Liberty Media Splitting Off Atlanta Braves Into New Public Company – Deadline

John Malone’s Liberty Media is splitting off 2021 World Series champions the Atlanta Braves Baseball Club and associated belongings right into a separate public company “to better highlight its strong value.”

As a part of a rejiggering of the Liberty universe, it is usually creating a brand new monitoring stock referred to as Liberty Live to deal with its stake in Live Nation.

Liberty Live would be a part of reconfigured Liberty Sirius XM and Liberty Formula One monitoring shares. These are specialised equities that spotlight a particular division or phase of a business however the place outdoors traders have little or no management. They grew to become massive within the Nineties and have been an indicator of Malone, a former telco and cable titan and extremely regarded investor and monetary engineer. Liberty’s holdings over time have touched a lot of media, together with an enormous stake in Warner Bros. Discovery.

The Braves’ belongings are additionally at the moment held in a monitoring stock, which might go away.

Liberty CEO Greg Maffei stated the operations “will provide greater investor choice and enable targeted investment and capital-raising through more focused currencies, while maintaining an optimal capital structure for Liberty Media.” It can even protect “optionality” with respect to subsidiary SiriusXM, and Liberty’s stake in Live Nation.

The break up requires the redemption of Liberty Media’s present Liberty Braves frequent stock in alternate for frequent stock of a newly shaped company to be referred to as Atlanta Braves Holdings. That would home all the companies, belongings and liabilities at the moment attributed to the Braves Group, together with Braves Holdings, owner-operator of the Atlanta Braves Major League Baseball Club, some belongings and liabilities of the Atlanta Braves’ stadium and mixed-use improvement project, The Battery Atlanta, and company money.

Terms: In reference to the break up, Liberty Media would redeem every excellent share of its Series A, Series B and Series C Liberty Braves frequent stock for one share of the corresponding collection of frequent stock of Atlanta Braves Holdings, so Liberty Media and Atlanta Braves Holdings could be separate publicly traded corporations.

The “intergroup interests” within the Braves Group held by Liberty Media’s present Liberty SiriusXM Group and Formula One Group could be “settled and extinguished” within the break up however how hasn’t but been decided.

Liberty Media would then create a brand new monitoring stock group, the Liberty Live Group.

Liberty Media expects its reclassified Liberty SiriusXM frequent stock, new Liberty Formula One frequent stock and new Liberty Live frequent stock to commerce on the Nasdaq or OTC Markets. The stock symbols for the primary two received’t change. Liberty Live’s A, B and C frequent stock will commerce beneath LLYVA, LLYVB and LLYVK, respectively.

Liberty Media stockholders should the transactions, which can also be topic to tax counsel, a signoff by Major League Baseball and a ruling by the IRS.

The split-off of the Braves can go ahead even with out the eventual reclassification of the monitoring shares.

Both operations, anticipated to be accomplished within the first half of subsequent year, are supposed to be tax free to stockholders.

The company made the announcement forward of an investor meeting in New York in the present day.

Back to top button