All Eyes on Liberty's Increased DIRECTV Stake

Wall Street took notice of Liberty Media's move to increase its stake in DIRECTV from 41 percent to 48 percent, a move made by purchasing 78.3 million shares in the satellite TV giant.

DIRECTV shares closed up 42 cents to $26.42 during trading Thursday.

To fund the purchase, Liberty said it borrowed $1.98 billion against a newly executed equity collar on 110 million DIRECTV common shares. The equity collar is a series of puts and calls with maturities ranging up to 4.4 years.

"These transactions reaffirm our belief in DIRECTV, the quality of its service, and the performance of (DIRECTV CEO) Chase Carey and his management team," said Greg Maffei, Liberty's president and CEO. "The additional shares and equity collar each increase our exposure to DIRECTV's equity and further align Liberty's interests with those of the DIRECTV shareholders."