Liberty Entertainment shareholders have approved a plan to merge
various operations with majority-owned DirecTV Group Inc. (DTV) and
spin off from its parent, John Malone-controlled Liberty Media
Corp. (LCAPA, LINTA, LMDIA).
The move will simplify structures and allow for the largest
satellite-television provider in the U.S. to pursue strategic deals
and partnerships difficult to execute presently. Malone, his wife
and his family trusts will own super-voting shares in the new
DirecTV, giving them 24% voting power.
"For the first time, DirecTV shareholders will control its
future without a controlling corporate parent," then-DirecTV Chief
Executive Chase Carey said in May when the move was first
announced. He resigned soon thereafter to rejoin News Corp. (NWS),
owner of this newswire and one-time part-owner of DirecTV. The
company said Wednesday that former PepsiCo Inc. (PEP) executive
Michael White will take over at the start of the year.
Besides DirecTV, included in the newly organized company will be
three regional sports networks and stakes in the Game Show Network
and FUN Technologies. The remaining Liberty Entertainment will be
renamed Liberty Starz, with the pay-TV channel the highest-profile
asset. The changes will take effect after the close of trading
Thursday.
Liberty Entertainment shares were recently up 0.9% to $36.10
amid a broad market decline while DirecTV added 0.6% to $31.23.
Liberty Entertainment has doubled this year while DirecTV is up
36%.
-By Nat Worden, Dow Jones Newswires; 212-416-2472;
nat.worden@dowjones.com