Liberty Media Completes Starz Spin-Off12 Jan, 2013 By: Erik Gruenwedel
Liberty Media Corp. Jan. 11 formally announced the spin-off of Starz LLC, the multichannel video distributor featuring the Encore and Starz premium TV channels. Both companies will begin trading on The Nasdaq Stock Market Jan. 14.
Following the separation, Liberty’s principal businesses and assets include its consolidated subsidiaries Atlanta National League Baseball Club, (Atlanta Braves) and TruePosition, equity affiliates Sirius XM Radio and Live Nation Entertainment, and minority investments in public companies such as Barnes & Noble, Time Warner, Time Warner Cable and Viacom.
Starz’ businesses and assets consist of those of Starz Entertainment, which distributes Walt Disney Studios (through 2016) and Sony Pictures (through 2017) movies in the pay-TV window. It also distributes Starz Originals programming such as “Magic City” and the “Spartacus” franchise, among others.
Starz CEO Christopher Albrecht, Irving Azoff, Derek Chang, Susan Lyne, Jeffrey Sagansky, Daniel Sanchez, Charles Tanabe and Robert Wiesenthal joined the board of directors of Starz, following the resignation of all of the former Liberty Media directors (other than CEO Gregory Maffei, who remains a director of Starz).
Liberty’s board of directors currently consists of all of the directors who previously served on the board of directors of the former Liberty Media Corp., including John Malone, Gregory Maffei, Robert Bennett, Donne Fisher, Ian Gilchrist, Evan Malone, David Rapley, Larry Romrell and Andrea Wong.
Starz has approximately $450 million available to borrow under its bank credit facility and another $400 million under its stock repurchase program. It also paid Liberty Media a $1.8 billion dividend.