Malone links up DirecTV and Liberty Media

Chris Forrester

At last John ‘the Cable Guy’ Malone has made his intentions known. He wants to merge DirecTV with Liberty Media. As ever with Malone the devil is in the detail, and it is a complex spider’s web that he is weaving.

Liberty Entertainment will be spun off from Liberty Media and will now include 54% of DirecTV stock, Liberty Sports Holdings, a 65% interest in Game Show Network, Fun Technologies, about $30m in cash and $2 billion in debt.

To help service Liberty Entertainment's debt, DirecTV will provide it with up to $650m in funding.

Liberty Entertainment and DirecTV will merge with the subsidiaries of a new unit that will be called DirecTV. DirecTV will now have two classes of stock. Class A shareholders are entitled to one vote per share, while Class B stockholders will be entitled to 15 votes per share. John Malone, his wife and linked and associated trusts will hold shares giving them about 24% of DirecTV's total voting power.

Chase Carey will continue as DirecTV’s president and CEO.