In per week of high-profile departures and resignations – not least Messrs Lineker and Welby – Greg Maffei is to step down as Liberty Media CEO.
Chairman, John Malone, will assume the function of interim CEO and can work intently with the Liberty Media govt group and the Board of Administrators to make sure a seamless transition, says the press launch, which means that Maffei’s ‘departure’ got here with little warning.
He’ll step down on the expiration of his contract at year-end and can function a senior advisor efficient January 1st to assist the administration transition.
“On behalf of the Liberty Media board, I would prefer to thank Greg for his management, creativity and dedication,” stated Malone. “Since becoming a member of in 2005, Greg has been on the forefront of the thrilling evolution within the lifecycle of Liberty. He has grown our asset base and made the corporate higher and extra worthwhile for shareholders, alongside the way in which overseeing as many as 5 separate public firms concurrently. Particularly following at this time’s transaction bulletins, our firm is less complicated and extra targeted than ever earlier than, which is an ideal capstone for Greg’s achieved profession at Liberty. I want Greg continued success as he embarks on his subsequent chapter and admire his continued assist as an Advisor.”
“The virtually 20 years I’ve spent on the helm of Liberty Media have been extremely rewarding, stimulating and endlessly eventful,” stated Maffei. “Following at this time’s bulletins at Liberty Media and Liberty Broadband, all of the Liberty acquisitions accomplished throughout my tenure at the moment are in buildings the place shareholders can have extra direct possession of their upside. The company construction is optimized, and the portfolio firms are in robust positions with proficient govt groups in place. Whereas it is by no means straightforward to depart a company as dynamic as Liberty, I’m assured that that is the suitable time. I’ve completely loved working alongside and studying from John, our board, the administration groups at Liberty and throughout the household of firms and our shareholders.”
“Wanting forward, I’m acutely targeted on rationalizing the structural reductions at Liberty Media and rising our engaging, money generative companies,” stated Malone. “We’ve got constructed a implausible firm with high-quality property in media, communications, sports activities and leisure. I look ahead to working with our govt group to uncover new alternatives for shareholder worth creation.”
Beneath Maffei, Liberty Media has grown its main media, communications, sports activities and leisure property. By means of inventive deal making, Liberty accomplished the acquisition and funding in preeminent companies together with the Atlanta Braves, DirecTV, SiriusXM, Reside Nation Leisure, Constitution Communications and Formulation 1.
Over the previous 19 years throughout Maffei’s tenure, Liberty Media’s composite worth has elevated at a compounded annual development price of 17% in comparison with 11% for the S&P 500, representing an 18x absolute return1. Whereas CEO, Maffei has served because the Chairman of SiriusXM, Reside Nation Leisure, Liberty TripAdvisor, Tripadvisor, Starz, Atlanta Braves Holdings and Qurate Retail, and has served as a director of Liberty Media, Liberty Broadband, Constitution Communications, DirecTV and Barnes & Noble. He’ll proceed to function Chairman of Qurate Retail, Liberty TripAdvisor, Tripadvisor and SiriusXM and as a Director of Constitution Communications, Reside Nation Leisure and Zillow.
Malone and Maffei will communicate at Liberty Media’s beforehand scheduled annual Investor Assembly on Thursday, November 14.
In one in all his ultimate acts, Maffei introduced that Liberty Media is pursuing a plan to separate off the Liberty Reside Group. Instantly previous to effecting the Break up-Off, Liberty Media’s subsidiary Quint will likely be reattributed from the Formulation One Group to the Liberty Reside Group in change for sure personal property. Any money consideration could be decided at a future date primarily based on relative valuations on the time of the reattribution.
“The split-off of Liberty Reside Group right into a separate public entity will simplify Liberty Media’s capital construction, ought to cut back the low cost to web asset worth of our Liberty Reside inventory and improve buying and selling liquidity at each entities,” stated Maffei. “Following the split-off, Liberty Media will likely be an impartial, asset-backed firm holding our motorsport companies and associated sports activities investments.
“Since buying Quint in January 2024, we now have bolstered its partnership with Formulation 1 and gained insights into our followers and ticket demand traits, however Quint can also be complementary to our curiosity in Reside Nation, particularly as Reside Nation works to develop its hospitality operations. Quint can proceed to reinforce its partnership with F1 and MotoGP on this new possession construction whereas having the chance to increase its providing to further companions.”
Liberty Media will have an effect on the Break up-Off via the redemption of Liberty Media’s Liberty Reside widespread inventory in change for widespread inventory of a newly shaped firm to be referred to as Liberty Reside, Inc. Liberty Media would redeem every excellent share of its Sequence A, Sequence B and Sequence C Liberty Reside widespread inventory for one share of the corresponding collection of widespread inventory of Liberty Reside, Inc. On account of the Break up-Off, Liberty Media and Liberty Reside, Inc. could be separate publicly traded firms, and Liberty Media would not have a monitoring inventory construction.
Liberty Reside, Inc. will maintain roughly 69.6 million shares of Reside Nation Leisure, Inc. (NYSE:LYV)1 (“Reside Nation”), Quint, sure personal property at present attributed to Liberty Reside Group, company money and debt obligations attributed to the Liberty Reside Group, along with different property as could also be decided by Liberty Media previous to the Break up-Off.
Liberty Media will maintain its subsidiaries Formulation 1 and MotoGP (upon closing the acquisition), sure personal property at present attributed to Formulation One Group, company money and debt obligations attributed to the Formulation One Group, along with different property as could also be decided by Liberty Media previous to the Break up-Off.
Liberty Media is anticipated to proceed to commerce on the Nasdaq World Choose Market. Liberty Reside, Inc. widespread inventory is anticipated to commerce on the Nasdaq World Choose Market or, if mandatory, to be quoted on the OTC Markets. Extra info will likely be accessible at a later date.
The Break up-Off is topic to numerous situations together with, amongst different issues, sure requisite approvals of holders of Sequence A and Sequence B Liberty Reside widespread inventory and the receipt of an opinion of tax counsel. The Break up-Off is meant to be tax-free to stockholders of Liberty Media. Topic to the satisfaction of the situations, Liberty Media expects to finish the Break up-Off within the second half of 2025.
