Gugi47
05-04-2009, 11:41 PM
DirectTV to merge with Liberty Media unit
DirecTV Group Inc. will merge with majority shareholder Liberty Entertainment once that unit is spun off from parent company Liberty Media Corp. as the John Malone-controlled vehicle looks to simplify its capital structure.
DirecTV shares were up 2.8% premarket at $25.26.
The company has fared well despite the global recession because the nation's largest satellite television provider targets customers who are more affluent and less likely to cancel service.
Liberty Entertainment currently holds a 54% stake in DirecTV. Under Liberty Media's spinoff of Liberty Entertainment, that unit will hold most of the assets currently attributed to its tracking stock, including the stake in DirecTV, three regional sports networks and stakes in Game Show Network and FUN Technologies.
Each holder of the Liberty Entertainment tracking stock will get 0.9 share of Liberty Entertainment common stock and retain 0.1 share of Liberty Starz stock.
Liberty Enterainment and DirecTV will then merge, with the combined business called DirecTV. DirecTV holders will get one share of DirecTV Class A common stock for each share of common stock they currently hold. Liberty Entertainment shareholders -- excluding Malone, his wife and associated trusts -- will get 1.11 shares for each Liberty Entertainment share they hold. Malone will hold about 24% of the new company's voting power along with his wife and the trusts.
The companies said Chase Carey will continue to serve as DirecTV's president and chief executive and DirecTV's current board, including Liberty's representatives, will likely continue to serve.
The split-offs and mergers are expected to be completed by year's end.
DirecTV Group Inc. will merge with majority shareholder Liberty Entertainment once that unit is spun off from parent company Liberty Media Corp. as the John Malone-controlled vehicle looks to simplify its capital structure.
DirecTV shares were up 2.8% premarket at $25.26.
The company has fared well despite the global recession because the nation's largest satellite television provider targets customers who are more affluent and less likely to cancel service.
Liberty Entertainment currently holds a 54% stake in DirecTV. Under Liberty Media's spinoff of Liberty Entertainment, that unit will hold most of the assets currently attributed to its tracking stock, including the stake in DirecTV, three regional sports networks and stakes in Game Show Network and FUN Technologies.
Each holder of the Liberty Entertainment tracking stock will get 0.9 share of Liberty Entertainment common stock and retain 0.1 share of Liberty Starz stock.
Liberty Enterainment and DirecTV will then merge, with the combined business called DirecTV. DirecTV holders will get one share of DirecTV Class A common stock for each share of common stock they currently hold. Liberty Entertainment shareholders -- excluding Malone, his wife and associated trusts -- will get 1.11 shares for each Liberty Entertainment share they hold. Malone will hold about 24% of the new company's voting power along with his wife and the trusts.
The companies said Chase Carey will continue to serve as DirecTV's president and chief executive and DirecTV's current board, including Liberty's representatives, will likely continue to serve.
The split-offs and mergers are expected to be completed by year's end.