Liberty Media to de-merge parts of its group to create new stocks

LIBERTY Media, the media firm owned by mogul John Malone, said yesterday it plans to spin off its investment and entertainment assets.

Liberty Capital and Liberty Starz, which together hold interests in Live Nation, Sirius XM Radio and Time Warner, will form a separate company to allow the group to turn the remaining business, containing QVC, into an asset-backed stock.

Liberty’s chief executive Greg Maffei said: “We believe the split-off will be positive for the long-term credit outlook at Liberty Interactive.”

Investors with shares in the Capital and Starz branches will be able to trade their shares for a stake in the newly-formed firm Newco when the deal is completed in early 2011.