Liberty Media’s cable spinoff, Liberty Broadband, will start trading today on the Nasdaq Global Select Market on a when-issued basis.
The separation is being carried out by issuing stock in the new entity to its current shareholders via a…
Liberty Media’s cable spinoff, Liberty Broadband, will start trading today on the Nasdaq Global Select Market on a when-issued basis.
The separation is being carried out by issuing stock in the new entity to its current shareholders via a dividend
Analysts have estimated that Liberty Broadband’s 88 million shares will be valued at about US$4.6bn, or about US$53 per share before a planned subscription rights offering in December. After the rights offer, Liberty Broadband is expected to trade at about US$51 per share.
John Malone’s Liberty Media started the process of spinning off its cable assets at the end of July.
The new entity, which is 47.3%-owned by Malone, is set to become the US’ second-largest cableco.
It will house Liberty’s 26.4% controlling stake in Charter Communications as well as an indirect 33% stake in GreatLand Connections, a new cableco set to be hived off from rival Comcast.
Back in May, Liberty Media CEO Greg Maffei said it made sense to spin off businesses that can stand alone and trade well alone, adding that a pure-play cableco would find it easier to raise capital.
