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Maffei steps down as Liberty Media CEO

NEWS STORY
15/11/2024

In a week of high-profile departures and resignations - not least Messrs Lineker and Welby - Greg Maffei is to step down as Liberty Media CEO.

Chairman, John Malone, will assume the role of interim CEO and will work closely with the Liberty Media executive team and the Board of Directors to ensure a seamless transition, says the press release, which suggests that Maffei's 'departure' came with little warning.

He will step down at the expiration of his contract at year-end and will serve as a senior advisor effective January 1st to support the management transition.

"On behalf of the Liberty Media board, I'd like to thank Greg for his leadership, creativity and dedication," said Malone. "Since joining in 2005, Greg has been at the forefront of the exciting evolution in the lifecycle of Liberty. He has grown our asset base and made the company better and more valuable for shareholders, along the way overseeing as many as five separate public companies simultaneously. Especially following today's transaction announcements, our company is simpler and more focused than ever before, which is a perfect capstone for Greg's accomplished career at Liberty. I wish Greg continued success as he embarks on his next chapter and appreciate his continued support as an Advisor."

"The almost 20 years I have spent at the helm of Liberty Media have been incredibly rewarding, stimulating and endlessly eventful," said Maffei. "Following today's announcements at Liberty Media and Liberty Broadband, all the Liberty acquisitions completed during my tenure are now in structures where shareholders can have more direct ownership in their upside. The corporate structure is optimized, and the portfolio companies are in strong positions with talented executive teams in place. While it's never easy to leave an organization as dynamic as Liberty, I am confident that this is the right time. I have thoroughly enjoyed working alongside and learning from John, our board, the management teams at Liberty and across the family of companies and our shareholders."

"Looking ahead, I am acutely focused on rationalizing the structural discounts at Liberty Media and growing our attractive, cash generative businesses," said Malone. "We have built a fantastic company with high-quality assets in media, communications, sports and entertainment. I look forward to working with our executive team to uncover new opportunities for shareholder value creation."

Under Maffei, Liberty Media has grown its leading media, communications, sports and entertainment assets. Through creative deal making, Liberty completed the acquisition and investment in preeminent businesses including the Atlanta Braves, DirecTV, SiriusXM, Live Nation Entertainment, Charter Communications and Formula 1.

Over the past 19 years during Maffei's tenure, Liberty Media's composite value has increased at a compounded annual growth rate of 17% compared to 11% for the S&P 500, representing an 18x absolute return1. While CEO, Maffei has served as the Chairman of SiriusXM, Live Nation Entertainment, Liberty TripAdvisor, Tripadvisor, Starz, Atlanta Braves Holdings and Qurate Retail, and has served as a director of Liberty Media, Liberty Broadband, Charter Communications, DirecTV and Barnes & Noble. He will continue to serve as Chairman of Qurate Retail, Liberty TripAdvisor, Tripadvisor and SiriusXM and as a Director of Charter Communications, Live Nation Entertainment and Zillow.

Malone and Maffei will speak at Liberty Media's previously scheduled annual Investor Meeting on Thursday, November 14.

In one of his final acts, Maffei announced that Liberty Media is pursuing a plan to split off the Liberty Live Group. Immediately prior to effecting the Split-Off, Liberty Media's subsidiary Quint will be reattributed from the Formula One Group to the Liberty Live Group in exchange for certain private assets. Any cash consideration would be determined at a future date based on relative valuations at the time of the reattribution.

"The split-off of Liberty Live Group into a separate public entity will simplify Liberty Media's capital structure, should reduce the discount to net asset value of our Liberty Live stock and enhance trading liquidity at both entities," said Maffei. "Following the split-off, Liberty Media will be an independent, asset-backed company holding our motorsport businesses and related sports investments.

"Since acquiring Quint in January 2024, we have bolstered its partnership with Formula 1 and gained insights into our fans and ticket demand trends, but Quint is also complementary to our interest in Live Nation, especially as Live Nation works to grow its hospitality operations. Quint can continue to enhance its partnership with F1 and MotoGP in this new ownership structure while having the opportunity to expand its offering to additional partners."

Liberty Media will affect the Split-Off through the redemption of Liberty Media's Liberty Live common stock in exchange for common stock of a newly formed company to be called Liberty Live, Inc. Liberty Media would redeem each outstanding share of its Series A, Series B and Series C Liberty Live common stock for one share of the corresponding series of common stock of Liberty Live, Inc. As a result of the Split-Off, Liberty Media and Liberty Live, Inc. would be separate publicly traded companies, and Liberty Media would no longer have a tracking stock structure.

Liberty Live, Inc. will hold approximately 69.6 million shares of Live Nation Entertainment, Inc. (NYSE:LYV)1 ("Live Nation"), Quint, certain private assets currently attributed to Liberty Live Group, corporate cash and debt obligations attributed to the Liberty Live Group, together with other assets as may be determined by Liberty Media prior to the Split-Off.

Liberty Media will hold its subsidiaries Formula 1 and MotoGP (upon closing the acquisition), certain private assets currently attributed to Formula One Group, corporate cash and debt obligations attributed to the Formula One Group, together with other assets as may be determined by Liberty Media prior to the Split-Off.

Liberty Media is expected to continue to trade on the Nasdaq Global Select Market. Liberty Live, Inc. common stock is expected to trade on the Nasdaq Global Select Market or, if necessary, to be quoted on the OTC Markets. Additional information will be available at a later date.

The Split-Off is subject to various conditions including, among other things, certain requisite approvals of holders of Series A and Series B Liberty Live common stock and the receipt of an opinion of tax counsel. The Split-Off is intended to be tax-free to stockholders of Liberty Media. Subject to the satisfaction of the conditions, Liberty Media expects to complete the Split-Off in the second half of 2025.

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READERS COMMENTS

 

1. Posted by Lethes, 16/11/2024 16:53

"If it wasn't for the ongoing investigations in the US about the F1 "cartel" I could almost believe this press release. Apparently Stefano is next in line to leave (FOM), and it is expected the US authorities will also attend the Las Vegas GP to have a conversation with some distinguished F1 team bosses, who apparently put pressure on FOM not to accept Andretti. There seems to be some WhatsApp messages proving this.
Just sit back and wait for the upcoming Netflix blockbuster about the F1 corleones!"

Rating: Positive (1)     Rate comment: Positive | NegativeReport this comment

2. Posted by itc, 15/11/2024 17:51

"I thought I'd acquired a decent knowledge of corporate doublespeak over my career, but I'm stumped by "rationalising structural discounts"."

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3. Posted by kenji, 14/11/2024 0:49

"When the CEO of such a large and influential Corp.as Liberty is, makes such personal comments publically, like those in the case of Andretti, something seems tainted and Malone knows that. I would hazard a guess but with investigations going on in the USA and Europe better to clear the decks and move forward. The 360 deg spin by MBS also needs a bit more than a cursory glance as well. Hopefully we'll see Andretti lining up on the grid in the not too distant future. What we need is a Musk inspired cleanout now that the wokies have gone to ground,"

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4. Posted by KKK, 13/11/2024 17:32

"Well in all the time he was in the post he has done absolutely nothing ! What a muppet, with any luck he is in Trumps cabinet! F1 will be a better place without him."

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5. Posted by ffracer, 13/11/2024 16:28

"In a matter of months, Michael Andretti and Greg Maffei have stepped down. Finally, Maffei’s venomous comments, rightly aired by racing legend and former F1 WDC Mario Andretti, hopefully played a part and expedited his demise.

Liberty, given the pergotory already placed on this welcome entity, and previously accepted by the FIA - sorry greedy Red Bull, Mercedes and others gloriously opposed - can you please facilitate so we can finally see hero Mario Andretti and two Andretti Cadillacs on the grid?!"

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6. Posted by BrightonCorgi, 13/11/2024 14:27

"@rnorm - My thoughts as well."

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7. Posted by rnorm, 13/11/2024 14:07

"Good riddance. Maybe now, Andretti/Cadillac can get on the grid."

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