(Adds details, analysts comments)
July 25 John Malone's Liberty Media Corp
started the process of spinning off its cable assets
through a stock dividend to its shareholders to form a new
listed company called Liberty Broadband.
Liberty Broadband, in a regulatory filing, said on Friday
the stock dividend would be worth up to $4.8 billion and Malone
would retain a voting interest of 47.3 percent.
Liberty Media shares were up 2 percent in premarket trading.
Liberty Media intends to offer its shareholders one share in
the spun-off company for every four shares held, Liberty
Broadband said. (1.usa.gov/1qDV4B0)
Berkshire Hathaway Inc and Comcast Corp
are among Liberty Media's top shareholders.
Liberty Broadband will house Liberty's stake in Charter
Communications, investments in Time Warner Cable
and the small location technology company True Position
The spin-off enables Liberty to eventually sell the asset
but disadvantages include lengthy holding periods to keep the
transaction tax efficient, Macquarie Research analysts wrote in
The plan, first announced on May 8, is similar to how
Liberty spun off television and movie channel Starz
last year. The complicated stock structure was designed to be
Liberty Media shares closed at $48.94 on the Nasdaq on
(Reporting by Soham Chatterjee and Supantha Mukherjee in
Bangalore; Editing by Saumyadeb Chakrabarty and Sriraj