Comments on: Liberty Media Spin-off Looks Like a Pass http://stockspinoffblog.com/2008/12/16/liberty-media-spin-off-looks-like-a-pass/ news and information for spinoff investors Tue, 07 Sep 2010 02:03:25 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: john http://stockspinoffblog.com/2008/12/16/liberty-media-spin-off-looks-like-a-pass/#comment-111 john Wed, 11 Feb 2009 19:19:16 +0000 http://stockspinoffblog.com/?p=120#comment-111 From what we have been told so far, yes, the asset based spin-off from the tracking stock will include DIRECTV (DTV) and Starz Entertainment and that could be a good deal at the present price of the tracking stock, but it does come with a $2B debt that was incurred to acquire that 52% of DIRECTV. Perhaps as management said in the press release, putting these components into a separate, asset based entity will increase their value. However, nothing else is changing about these businesses. They are just being moved from one pocket to another in the same suit so to speak. Fortunately we will have the SEC filings to find out exactly how it is going to happen From what we have been told so far, yes, the asset based spin-off from the tracking stock will include DIRECTV (DTV) and Starz Entertainment and that could be a good deal at the present price of the tracking stock, but it does come with a $2B debt that was incurred to acquire that 52% of DIRECTV.

Perhaps as management said in the press release, putting these components into a separate, asset based entity will increase their value. However, nothing else is changing about these businesses. They are just being moved from one pocket to another in the same suit so to speak.

Fortunately we will have the SEC filings to find out exactly how it is going to happen

]]> By: PlanMaestro http://stockspinoffblog.com/2008/12/16/liberty-media-spin-off-looks-like-a-pass/#comment-104 PlanMaestro Mon, 19 Jan 2009 16:42:59 +0000 http://stockspinoffblog.com/?p=120#comment-104 I would still take look at this. Greenblatt's "You can be a...." describes Malone's history of making things complicated so that he can choose the better piece of the pie and reduce taxes in the process. LMDIA owns a controlling 52% of DTV. At current prices you get a 30%-40% discount on its DTV assets (public company, you have to substract debt), that I believe are also way cheap. Plus you get Starz Entertainment (cash flow positive) for free. I would still take look at this. Greenblatt’s “You can be a….” describes Malone’s history of making things complicated so that he can choose the better piece of the pie and reduce taxes in the process.

LMDIA owns a controlling 52% of DTV. At current prices you get a 30%-40% discount on its DTV assets (public company, you have to substract debt), that I believe are also way cheap. Plus you get Starz Entertainment (cash flow positive) for free.

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