News
Liberty to Spin Off Manga Entertainment's Parent Starz
posted on by Egan Loo
Greg Maffei, President and CEO of Liberty Media Corporation, announced on Wednesday that his company plans to "separate the assets of Liberty Media and Starz, LLC, creating two separate asset-backed stocks." Starz Media is the parent company of the anime distributor Manga Entertainment, as well as of the distributor Anchor Bay.
Liberty Media did not specify if Manga Entertainment will be part of the new public company called Starz, LLC. However, Liberty Media said that the second company that will result from the split, New Liberty, will hold "all of the businesses, assets and liabilities of Liberty Media not associated with Starz, LLC."
Maffei explained that the separation of the assets "will provide better transparency on the Starz operating business; optimize the Starz capital structure; permit us to better pursue our strategic objectives, including creating two currencies that could be used for acquisitions; and create significant liquidity at Liberty Media, which preserves all our options with respect to SiriusXM and Live Nation."
Liberty reported that Starz's revenue remained unchanged at US$403 million for the second quarter of the current fiscal year. However, "the increase in revenue for the Starz Channels business was offset by decreases in revenue for the Starz Distribution and Starz Animation businesses."
According to Liberty, the spin-off will require government approval, but will not require a stockholder vote.
Source: Deadline
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