Two Liberty Execs Join On Command4/30/2001 9:54 AM Eastern
Two Liberty Media Group executives have joined the management team of On
Command Corp. -- a move some analysts believe could be the first step in
transferring Liberty's investment in the in-room hotel-entertainment company to
its Liberty Satellite & Technologies Inc. subsidiary.
On Command said late Friday that chairman Jerome Kern would resign as CEO of
On Command but retain the chairman title. Coming on board will be Liberty
Satellite president and CEO Carl Vogel as vice chairman and Liberty Satellite
senior vice president Chris Sophinos, who will become On Command's president.
Both Vogel and Sophinos will retain their roles with Liberty Satellite.
In a research note, Janco Partners analyst Matthew Riegner said the
management shift could mean that Liberty is looking to move its 56 percent stake
in On Command to Liberty Satellite 'in an effort to create more value at both
companies' and to allow Liberty Satellite to leverage its technologies in the
hotel room to create a more cost-efficient solution.
'In our opinion, with [Liberty Satellite] management taking on a prominent
role in On Command's operations, this shift appears more likely,' Riegner
Liberty Satellite, traded on the over-the-counter bulletin board, mainly
invests in satellite-communications companies. Its investments include XM
Satellite Radio Inc., Sky Latin America, Astrolink International LLC and
WildBlue Communications Inc.
Liberty Satellite stock was up 8 cents each to $4 per share Monday. On
Command was up 1 cent to $6.81.