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 government crew 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 help the administration transition.
“On behalf of the Liberty Media board, I might prefer to thank Greg for his management, creativity and dedication,” mentioned 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 beneficial 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 easier and extra centered 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 respect his continued help as an Advisor.”
“The virtually 20 years I’ve spent on the helm of Liberty Media have been extremely rewarding, stimulating and endlessly eventful,” mentioned 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 constructions the place shareholders can have extra direct possession of their upside. The company construction is optimized, and the portfolio firms are in sturdy positions with gifted government groups in place. Whereas it is by no means simple to go away a corporation as dynamic as Liberty, I’m assured that that is the precise time. I’ve totally loved working alongside and studying from John, our board, the administration groups at Liberty and throughout the household of firms and our shareholders.”
“Trying forward, I’m acutely centered on rationalizing the structural reductions at Liberty Media and rising our enticing, money generative companies,” mentioned Malone. “We have now constructed a incredible firm with high-quality property in media, communications, sports activities and leisure. I sit up for working with our government crew to uncover new alternatives for shareholder worth creation.”
Beneath Maffei, Liberty Media has grown its main media, communications, sports activities and leisure property. Via artistic deal making, Liberty accomplished the acquisition and funding in preeminent companies together with the Atlanta Braves, DirecTV, SiriusXM, Dwell Nation Leisure, Constitution Communications and Components 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, Dwell 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, Dwell Nation Leisure and Zillow.
Malone and Maffei will communicate at Liberty Media’s beforehand scheduled annual Investor Assembly on Thursday, November 14.
In certainly one of his closing acts, Maffei introduced that Liberty Media is pursuing a plan to separate off the Liberty Dwell Group. Instantly previous to effecting the Cut up-Off, Liberty Media’s subsidiary Quint shall be reattributed from the Components One Group to the Liberty Dwell Group in alternate for sure non-public property. Any money consideration can be decided at a future date based mostly on relative valuations on the time of the reattribution.
“The split-off of Liberty Dwell 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 Dwell inventory and improve buying and selling liquidity at each entities,” mentioned Maffei. “Following the split-off, Liberty Media shall 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 Components 1 and gained insights into our followers and ticket demand traits, however Quint can also be complementary to our curiosity in Dwell Nation, particularly as Dwell Nation works to develop its hospitality operations. Quint can proceed to boost its partnership with F1 and MotoGP on this new possession construction whereas having the chance to develop its providing to extra companions.”
Liberty Media will have an effect on the Cut up-Off by way of the redemption of Liberty Media’s Liberty Dwell frequent inventory in alternate for frequent inventory of a newly shaped firm to be known as Liberty Dwell, Inc. Liberty Media would redeem every excellent share of its Collection A, Collection B and Collection C Liberty Dwell frequent inventory for one share of the corresponding sequence of frequent inventory of Liberty Dwell, Inc. Because of the Cut up-Off, Liberty Media and Liberty Dwell, Inc. can be separate publicly traded firms, and Liberty Media would now not have a monitoring inventory construction.
Liberty Dwell, Inc. will maintain roughly 69.6 million shares of Dwell Nation Leisure, Inc. (NYSE:LYV)1 (“Dwell Nation”), Quint, sure non-public property presently attributed to Liberty Dwell Group, company money and debt obligations attributed to the Liberty Dwell Group, along with different property as could also be decided by Liberty Media previous to the Cut up-Off.
Liberty Media will maintain its subsidiaries Components 1 and MotoGP (upon closing the acquisition), sure non-public property presently attributed to Components One Group, company money and debt obligations attributed to the Components One Group, along with different property as could also be decided by Liberty Media previous to the Cut up-Off.
Liberty Media is predicted to proceed to commerce on the Nasdaq World Choose Market. Liberty Dwell, Inc. frequent inventory is predicted to commerce on the Nasdaq World Choose Market or, if vital, to be quoted on the OTC Markets. Extra data shall be obtainable at a later date.
The Cut up-Off is topic to numerous situations together with, amongst different issues, sure requisite approvals of holders of Collection A and Collection B Liberty Dwell frequent inventory and the receipt of an opinion of tax counsel. The Cut 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 Cut up-Off within the second half of 2025.
