Liberty, Starz spin-off finalised

Editor | 13-01-2013

Liberty Media and Starz have completed their corporate decoupling whereby they will now trade as separate publicly traded companies.

As part of the action, Liberty changed its name from “Liberty Spinco, Inc.” to “Liberty Media Corporation,” and Starz changed its name from “Liberty Media Corporation” to “Starz.” Both companies will begin trading regular way on The Nasdaq Stock Market from 14 January 2013.

Prior to the spin-off, Starz used cash on hand and borrowings under its bank credit facility and distributed an additional $1.2 billion to Liberty Media. In the past it had distributed $600 million. For its part Starz has approximately $450 million available to borrow under its bank credit facility after this distribution. Furthermore, Liberty will have approximately $450 million available under its stock repurchase program, and Starz will have approximately $400 million available under its stock repurchase program.

As a result, Liberty’s principal businesses and assets will now include its consolidated subsidiaries Atlanta National League Baseball Club, TruePosition and Live Nation Entertainment, as well as investments in companies such as Barnes & Noble, Time Warner, Time Warner Cable and Viacom.

Starz’s businesses and assets consist of those of its wholly owned subsidiary Starz LLC and it provides premium subscription video programming on domestic pay-TV channels, global content distribution and animated television and movie production.