[Stuart Sweet]

From cnn.com:

Liberty Media Corp. will spin off its Liberty Entertainment (LMDIA) business into a separate entity that will hold $2 billion in debt incurred in the company's April investment in DirecTV Group Inc. (DTV), freeing the parent company to focus on other objectives.

More here:

http://money.cnn.com/news/newsfeeds/articles/djf500/200809030935DOWJONESDJONLINE000553_FORTUNE5.htm

 

[karlhenri]

From cnn.com:
More here:

http://money.cnn.com/news/newsfeeds/articles/djf500/200809030935DOWJONESDJONLINE000553_FORTUNE5.htm

can you speculate as to the possible impact?

For example: on the possible Voom acquisition?
On programming deals?
On speed of execution for DirecTV?

 

[hdtvfan0001]

can you speculate as to the possible impact?

For example: on the possible Voom acquisition?
On programming deals?
On speed of execution for DirecTV?

One of several possible steps to be able to run the various businesses along vertical lines, and further encourage alliances and future expansions.

These kinds of org changes happen all the time....and are done for all sorts of reasons.

 

[Steve615]

A link to another article about this.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aUuEiKLxd5kU

 

[Draconis]

Another update from CNN.com.

Liberty Entertainment Spin-off Could Lead To DirecTV Deal

Liberty Media and DirecTV have both acknowledged publicly that the convoluted ownership structure of DirectTV limits its strategic options. By giving owners of Liberty's entertainment tracking stock a direct stake in the underlying assets, Liberty is opening the door to a tax-friendly deal that would combine ownership of the satellite TV company into one stock.

 

[harsh]

can you speculate as to the possible impact?

[speculation]DIRECTV will be sold out of the Malone stables shortly after the separation completes.[/speculation]

It seems an odd way to transfer a loss.

 

[K4SMX]

" 'Malone may try to exploit his large position in DirecTV to float a takeover bid that offers shareholders in the satellite provider only a small premium,' said Sanford C. Bernstein & Co. analyst Craig Moffett in New York.

'What matters is not simply Malone's intent, but price,' said Moffett, who said DirecTV shares will track the market and doesn't own them. 'It may not be good for shareholders.'

Malone may later try to flip the company to AT&T Inc." (Bloomberg)

Let's see....in my case, that would result in AT&T becoming my telephone (ex-BellSouth), wireless (ex-Cingular), internet (ex-BellSouth), and TV programming (ex-DirecTV) provider......

 

[Cpt Guavaberry]

" 'Malone may try to exploit his large position in DirecTV to float a takeover bid that offers shareholders in the satellite provider only a small premium,' said Sanford C. Bernstein & Co. analyst Craig Moffett in New York.

'What matters is not simply Malone's intent, but price,' said Moffett, who said DirecTV shares will track the market and doesn't own them. 'It may not be good for shareholders.'

Malone may later try to flip the company to AT&T Inc." (Bloomberg)

Let's see....in my case, that would result in AT&T becoming my telephone (ex-BellSouth), wireless (ex-Cingular), internet (ex-BellSouth), and TV programming (ex-DirecTV) provider......

But, is this a good thing or a bad thing??

Come to think of it, I had Bell South cable before the AT&T buy out, but got smarted and switched to D*. :lol:

 

[mreposter]

But, is this a good thing or a bad thing??

Is the spinoff a good thing? Too early to tell, at least they've included Starz in in the new holding company, so that increases the value of Directv and should increase revenues.

Would selling Directv to AT&T be a good thing? Long-term, it's probably a good thing. If AT&T merges it with U-verse it's probably a good thing. Fiber to the home services are a significant threat to cable and satellite services, with fiber eventually being the lower-cost, higher capacity delivery medium.

In the next 5 years it's likely that a big chunk of scripted entertainment (traditional TV shows like The Office and CSI) will move to video-on-demand or web streaming and E* and D* will need to figure out a way to do this effectively.