Liberty Media Corp (NASDAQ:LMCA) (NASDAQ:LMCB), the communication, entertainment and media company controlled by John Malone started the process to spin off its cable assets by distributing dividend to shareholders to establish a new publicly listed company called Liberty Broadband Corporation.
Details of Liberty Media’s spinoff
In a regulatory filing with the Securities and Exchange Commission (SEC), Liberty Broadband Corporation, which is currently a subsidiary of Liberty Media Corp (NASDAQ:LMCA) (NASDAQ:LMCB) indicated that the stock dividend that will be distributed to shareholders will be around $4.8 billion. Malone will retain a 47.3% voting interest.
Liberty Media Corp (NASDAQ:LMCA) (NASDAQ:LMCB) will retain the remainder of its businesses, assets and liabilities not held by Liberty Broadband Corporation at the time of the spin-off. These include its subsidiaries, Siris XM Holdings, Inc. (NASDAQ:SIRI), Atlanta National League Baseball Club, Inc. (ANLBC) and its interest in Live Nation Entertainment, Inc. (Live Nation).
Liberty Broadband Corporation said its principal businesses, assets and liabilities will consist of the 26% ownership interest of Liberty Media Corp (NASDAQ:LMCA) NASDAQ:LMCB) and warrant to purchase additional shares of Charter Communications, Inc. (NASDAQ:CHTR), 100% interest in TruePosition and a minority investment in Time Warner Cable Inc (NYSE:TWC) after the spinoff. It will also assume certain deferred tax liabilities, liabilities related to TWC calls option and $300 million in debt (collectively referred to as Broadband Assets and Liabilities).
After the spinoff, Liberty Broadband Corporation will become an independent publicly traded company, and Liberty Media Corp (NASDAQ:LMCA) (NASDAQ:LMCB) will not retain any ownership interest in the new company.
Liberty Broadband Corporation expects to expect to enter into certain agreements including reorganization and tax sharing agreements with Liberty Media Corp (NASDAQ:LMCA) (NASDAQ:LMCB) in connection with the spinoff.
“We and Liberty will indemnify each other against certain liabilities that may arise from our respective businesses,” according to Liberty Broadband Corporation.
Liberty Broadband Corporation to list at NASDAQ
Liberty Broadband Corporation plans to list its Series A common stock and Series C common stock at NASDAQ Global Select Market under the tickers “LBRDA” and LBRDK, respectively.
The company also indicated its plan to trade its Series B common stock at the OTC Bulletin Board under the symbol “LBRDB.” The company also intends to list its Series C Rights under the symbol “[LBRKR]” at NASDAQ Global Select Market, but will not be traded until the subscription price has been determined and announced.
