Liberty Entertainment Spin Vote Set For Nov. 19
Spin would Create Liberty Starz, Consolidate DirecTV
Mike Farrell , 10/19/2009 5:29:38 PM
Liberty Media said late Monday that it has scheduled Nov, 19 for a shareholder vote that would restructure its Liberty Entertainment tracking stock, consolidating its 57% interest in DirecTV, while spinning out other assets, including Starz Entertainment.
According to a proxy statement filed Monday with the Securities and Exchange Commission, shareholders will vote in a special meeting held at the Sheraton New York Hotel & Towers in New York City at 9:30 a.m. on Nov. 19.
Liberty announced the decision to restructure Liberty Entertainment in May.
According to the deal, Liberty Media would redeem 0.9 of each outstanding share of Liberty Entertainment common stock for 0.9 shares of common stock in a newly formed entity, also called Liberty Entertainment. The new Liberty Entertainment will include the DirecTV interest, Liberty's regional sports networks -- FSN Pittsburgh, FSN Rocky Mountain, and FSN Northwest -- a 65% interest in cable network GSN, $80 million in cash and $2 billion in debt. That entity will later be merged with DirecTV, at which time it will assume the DirecTV name.
Liberty Entertainment's remaining assets - premium network Starz Entertainment, WildBlue, PicksPal, Fanball, FUN Technologies and about $650 million in cash - will be renamed Liberty Starz.
Liberty said it intends to trade Liberty Starz on the NASDAQ global select market system under the symbols "LSTZA" and "LSTZB."