Maffei: Liberty Entertainment Split Remains 'Preferred Path'
But Warns Deal Could Die On Vine
By Mike Farrell -- Multichannel News, 12/10/2008 3:20:00 AM
New York -- Although delayed, Liberty Media’s plans to split off its Liberty Entertainment tracker is still the preferred path for the company, Liberty CEO Greg Maffei said at an industry conference here Wednesday, while also hedging that the transaction may never materialize.
Liberty announced in September its plans to split off Liberty Entertainment, the tracking stock that includes its Starz Entertainment premium network, its stake in satellite TV giant DirecTV, FUN Technologies, Liberty Sports Holdings, and its interests in cable network GSN and wireless broadband provider WildBlue Communications. But the deal has been placed on indefinite hold as the economy and the stock market have tanked over the past few months.
At the UBS Media and Communications conference here, Maffei said that the split off “remains our desired path,” adding that if the company had another plan they would have announced it already. But still, Maffei cautioned that with the current condition of the markets, “we can’t take off the table that it might not get done.”
Maffei said that most of Liberty’s assets have weathered the economic downturn well – mainly its subscription businesses like Starz Entertainment and DirecTV and its e-commerce businesses. He added that Starz has not seen a decline in subscriptions due to the sluggish economy.
“We are blessed or cursed with a broad portfolio, excelling or suffering to various degrees,” Maffei said.
But Maffei said that some of its other assets are experiencing a little more difficulty, particularly cable network GSN and its QVC home shopping channel.
Maffei said that GSN is doing “OK,” mainly because it is a relatively low cost alternative for advertisers, but added that the “advertising market is lousy” for television networks. At QVC, the “environment is very tough.”
Maffei fielded several questions regarding the future of DirecTV, adding that telephone companies are “natural partners,” but wouldn’t elaborate. On the content side, Maffei said that while the recent trend has been to separate content from distribution – a la Time Warner Inc. and News Corp. – he believes the two eventually belong together.
“We probably believe there is logic in putting content and distribution together,” Maffei said. “The market logic isn’t there today.”
No related content found.
Featured Company
-
Digital Rapids
Digital Rapids is the leading provider of professional hardware and software tools, technology and expertise for bringing video to wider audiences and new viewing platforms. Continuing to set new standards in quality, productivity and versatility, our solutions span the critical ..more
VIEW ALL GALLERIES
