Prior to the spin-off, Liberty Media’s subsidiary Quint would be a reattributed from the Formula One Group to the Liberty Live Group, in exchange for certain private assets.
Liberty Media will begin the spin-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.
As a result of the spin-off, Liberty Media and Liberty Live would be separate publicly traded companies. Liberty Live, Inc will hold approximately 69.6 million shares of Live Nation Entertainment.
Liberty Media completed its acquisition of QuintEvents, a provider of premium experiences for sports and entertainment events, in January.
“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,” commented Greg Maffei, Liberty Media president and chief executive.
“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.”
Maffei added: “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 still 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 associated with Formula One Group, as well as other assets.
The spin-off is subject to various conditions including approval from common stock holders.
Maffei also revealed that he will step down from his role as president and CEO at the end of the year. Chairman John Malone will take on the role from January 1 in an interim capacity.