NEW YORK (TheStreet) -- Shares of Liberty Media Corp. (LMCA) are up 2.06% to $49.95 in pre-market trade as the company began the process of spinning off its cable assets through a stock dividend to its shareholders to form a new listed company called Liberty Broadband, Reuters reports.
Liberty Broadband said the stock dividend would be worth up to $4.8 billion and Chairman John Malone would retain a voting interest of 47.3%, according to a regulatory filing.
TheStreet Ratings team rates LIBERTY MEDIA CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIBERTY MEDIA CORP (LMCA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow."