Liberty Media is splitting in two. Two separate stocks, that is. Liberty Capital will now be reclassified as one stock. The new tracking stock, Liberty Entertainment, will hold the 38.5% stake in
DirecTV, three regional sports nets and $588 million in cash it gets from the News Corp. deal. "The reclassification should achieve two purposes," Liberty President and CEO Greg Maffei said in a
statement. "It will create a focused distribution and programming business in Liberty Entertainment. We believe this new Liberty Entertainment group equity should increase shareholder value and
provide a strong currency that will increase our strategic flexibility."
