((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
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Liberty Media to divest most of its non-motorsports assets
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Longtime CEO Maffei hands over to board chairman John Malone
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Charter buys Liberty Broadband
(Recast paragraph 1, added details to paragraphs 13-16)
Formula One owner Liberty Media FWONA.O will focus more on its motorsport business by spinning off most of its other assets and said chairman John Malone would become interim chief executive when his boss long-time employee will leave his position at the end of 2024.
Greg Maffei, who spearheaded the company's rapid expansion into the media, communications, sports and entertainment industries during nearly two decades at the helm of the company, will assume a role as principal advisor as of January 1.
Separately on Wednesday, Liberty Broadband, which was spun off from Liberty Media in 2014, said it had agreed to merge with Charter Communications CHTR.O in an all-stock transaction.
Following the spin-off, Liberty Media will primarily own its Formula One and MotoGP motorsport subsidiaries, as well as other related sports investments.
It will spin off its Liberty Live Group unit into a separate public entity, which will own about 70 million shares of US concert promoter Live Nation Entertainment
LYV.N, among other assets.
The new company, to be called Liberty Live, will also own Quint, Liberty Media's ticketing and events unit, as well as private assets, cash and debt obligations allocated to Liberty Live Group.
“Separating the Liberty Live Group into a separate public entity will simplify Liberty Media's capital structure, is expected to reduce the discount to net asset value of our Liberty Live shares and improve transaction liquidity for both entities ” said Mr. Maffei, Managing Director of Liberty Media.
In 2016, Liberty Media reached an agreement to buy Formula One from a consortium of sellers led by CVC Capital Partners for $4.4 billion. She purchased Quint earlier this year.
Following the split, Liberty Media will no longer have a reflective share structure. A tracking stock depends on the financial performance of the segment of the company it “mirrors.” They are traded separately from the shares of the parent company.
Liberty Media plans to complete the split in the second half of 2025.
“Following today's announcements regarding Liberty Media and Liberty Broadband, all Liberty acquisitions made during my tenure now have structures that allow shareholders to have a more direct stake in their businesses,” Mr. Maffei.
LEADING SHAREHOLDER
Liberty Broadband, which owns 26% of Charter on a fully diluted basis, had a market value of about $14 billion, according to LSEG data.
Charter's offer values Liberty Broadband at $13.22 billion under the terms of the transaction, according to Reuters calculations.
Liberty Broadband shares fell more than 4%, while Charter rose 4%.
Under Maffei's leadership, Liberty Media has made several acquisitions and investments, including in DirecTV, SiriusXM, Live Nation Entertainment and FormulaOne.
