Liberty Interactive Corp LINTA.O 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 (TRIP.O) and online retailer BuySeasons into a new company known as Liberty TripAdvisor Holdings.
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 (LMCA.O) 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, HSN Inc.
"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 currency."
Separately, Liberty Media said Sirius XM Radio Inc (SIRI.O), 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 Thursday.
(Reporting by Jennifer Saba in New York and Sruthi Ramakrishnan in Bangalore; Editing by Rodney Joyce, Don Sebastian and Jeffrey Benkoe)