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Liberty Interactive Corporation Message Board

  • ezalldee ezalldee Dec 8, 2006 9:05 AM Flag

    Malone got a SWEET deal! YEEEES!

    Rupp still does not know what hit him. Don't forget to add in the 2 bil. in tax saving for Liberty. GO JOHN BOY GO.

    December 8, 2006
    Is Rupert Murdoch stiffing shareholders to cement control of his
    media empire? That's the risk News Corp.'s investors now face in Mr.
    Murdoch's planned exchange of assets with John Malone's Liberty

    Since the two interests are valued at roughly $11 billion each, this
    should be an easy swap, right? Perhaps -- but Mr. Murdoch is
    expected to sweeten the pot by handing Liberty an extra $550 million
    in cash and three sports cable networks.

    That sounds like an awful lot, given the control that News Corp.'s
    stake confers over DirecTV. Indeed, one could reasonably argue that
    Mr. Malone should be paying a premium of some $2 billion, or 20%
    more, to take control of the business.

    Why would Mr. Murdoch be willing to forgo this premium from Liberty?
    For starters, by treating the transaction essentially as a buyback,
    and retiring Liberty's 188 million shares, Mr. Murdoch increases his
    control of the company to almost 40%. That's great for him and his
    children, but it isn't necessarily a win for minority shareholders.