Liberty Media Restructures Entertainment Division as CEO Greg Maffei Announces Departure
Liberty Media is set to separate its entertainment assets from Formula One into a new publicly traded company, Liberty Live, while CEO Greg Maffei plans to step down by the end of 2025.
Highlights
- Liberty Media to spin off entertainment assets excluding Formula One into Liberty Live, a separate publicly traded company.
- CEO Greg Maffei will resign at the end of 2024, with Chairman John Malone stepping in as interim CEO.
- Liberty Broadband will be acquired by Charter Communications in a distinct transaction.
Liberty Media (FWONA, FWONK, LLYVA, LLYVK) announced plans to create Liberty Live, a new publicly traded company that will house most of its entertainment holdings except for Formula One, which it will continue to own. CEO Greg Maffei confirmed his intention to step down by the close of 2024.
Liberty Live will include Liberty Media’s approximately 30% stake in Live Nation Entertainment as of July 31, as well as ownership of Quint, a leading ticketing and hospitality company in the sports and entertainment sectors. Liberty Media will retain ownership of Formula One, acquired in 2017, along with the MotoGP motorcycle racing series. The spin-off is anticipated to be finalized in the latter half of 2025.
Veteran CEO Greg Maffei will exit the company at the end of 2024, with billionaire Liberty Media Chairman John Malone assuming interim leadership.
This restructuring aims to simplify Liberty Media’s intricate stock structure by maintaining separate tracking stocks for its Formula One and Liberty Live divisions. Following the announcement, Formula One’s Class C shares rose roughly 6%, while Liberty Live’s Class C shares saw a 2% decline.
Liberty Broadband Acquisition by Charter Communications
In a separate development, Liberty Broadband (LBRDK) revealed it will be acquired by Charter Communications (CHTR). Liberty Broadband, which was spun off from Liberty Media in 2014, held a 36% ownership stake in Charter as of July 31.
Under the terms of the deal, Liberty Broadband shareholders will receive 0.236 shares of Charter for each Liberty share they own. The transaction is expected to close by mid-2027.
Following the announcement, Charter’s shares increased nearly 4%, while Liberty Broadband’s shares declined by 5%.
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