Oct 10 Liberty Interactive Corp said
on Thursday it would split into two tracking stocks, one for its
cable shopping business QVC and the other for its e-commerce
holdings including digital invitation site Evite.
Liberty Interactive also said it would spin off its stake in
travel website TripAdvisor Inc and online retailer
BuySeasons into a new company known as Liberty TripAdvisor
Shares of Liberty Interactive jumped 7 percent to $24.44.
The company is hosting an investor day in New York on Thursday.
Liberty Interactive is controlled by its chairman, John
Malone, who also runs Liberty Media Corp and is known
as the "King of Cable" for buying and selling cable and media
companies for decades.
The two new stocks will be known as Liberty Digital
Commerce, which will include its other e-commerce companies such
as Provide Commerce and Backcountry.com, and QVC Group.
QVC Group will include the cable shopping channel QVC Inc
and Liberty's 38 percent interest in another shopping channel,
"We view the deal as positive for Liberty Interactive,"
wrote Stifel analyst Benjamin Mogil in a note.
"The company is capitalizing on multiples for eCommerce
companies ... and will allow Liberty Digital Commerce to likely
accelerate its M&A by offering targets a more pure-play
Separately, Liberty Media said Sirius XM Radio Inc,
in which it is a majority owner, will buy back $500 million of
its common stock from Liberty. The buyback is part of Sirius'
plan to increase share repurchases by an additional $2 billion.
Liberty Media will continue to own more than 52 percent of
Sirius' outstanding shares after the repurchase.
Shares of Sirius rose 3 percent to $3.94 in morning trade on