Liberty eyes merging DirecTV, Liberty Entertainment
NEW YORK (Reuters) - Liberty Media Corp said on Tuesday it would like to merge satellite TV operator DirecTV Group with Liberty Entertainment if the terms are suitable to its shareholders.
Liberty Media said last week it will spin off its nearly 50 percent stake in DirecTV and other assets into a publicly traded Liberty Entertainment under the LMDIA ticker.
"We would ultimately like to have one company, a DirecTV merged with LMDIA," said Liberty Media Chief Executive Greg Maffei, speaking at a Merrill Lynch investor conference.
"But I don't think that it's a requirement if we can't get it on terms that are attractive to LMDIA shareholders.
Maffei raised the possibility of a number of different paths that Liberty could take to consolidate the operating assets under one stock in a tax-efficient manner.
He said Liberty Entertainment could issue stock and purchase DirecTV or the deal could be the other way round with DirecTV issuing stock and purchasing Liberty.
"You could also imagine selling LMDIA and/or DirecTV to a third party. All possibilities are out there," said Maffei.
He said the two companies could remain separate if they are unable to reach agreement.
The publicly traded Liberty Entertainment will consist of about 50 percent of DirecTV, the largest U.S. largest satellite TV operator; Starz Entertainment, the pay-TV network; Liberty Sports Holdings; FUN Technologies; and stakes in GSN and WildBlue Communications.
Maffei said he expects the Liberty Entertainment/DirecTV deal to close later in the year or in January.
(Reporting by Yinka Adegoke; Editing by Gary Hill)
