John Malone’s Liberty Media Corp is to create a separate company that will house US satellite platform DirecTV alongside other elements of Liberty’s media interests.
Last autumn Liberty said it would spin off its Liberty Entertainment division. DirecTV will now merge with the company, becoming Liberty Entertainment’s parent.
“This transaction clarifies DirecTV’s capital structure, reduces its shares outstanding, eliminates stock overhang and arbitrage issues, and provides DirecTV with strategic content businesses,” Liberty Media Chief Executive Greg Maffei said in a statement.
Current CEO Chase Carey will head the new DirecTV Group, and Malone remains as chairman, but with his family voting stake reduced from 48 to 24%. Speaking about the transaction Carey said the company would now be able to better reflect the interests of its shareholders.