Malone merges Liberty Entertainment and DirecTV
May 5, 2009
DirecTV will merge with John Malone's Liberty Entertainment to simplify its ownership structure and improve its ability to pursue deals; specifically making itself a more attractive target for one of the big telcos. Liberty Entertainment will be spun off from Liberty Media as previously announced, and will now include 54 per cent of the stock of DirecTV as well as Liberty Sports Holdings, a 65 per cent interest in Game Show Network, Fun Technologies, and about $30 million in cash and $2 billion in debt. To help service Liberty Entertainment’s debt, DirecTV will provide it with up to $650 million in funding.
Chase Carey, DirecTV's chief executive said: "The transaction will improve our ability to pursue strategic initiatives that can enhance value for all DirecTV shareholders." Liberty Media took control of DirecTV Group after swapping its 16 per cent stake in News Corp for Rupert Murdoch's 40 per cent stake in DirecTV. DirecTV's executive team will remain at the new company.
The deal doesn't affect Liberty Global the holding company for worldwide cable assets and Chello Media.