Shareholders have approved Liberty Media’s proposal to split off Liberty Entertainment and combine it with the DirecTV Group.
The move is widely believed to be preparatory to a sale of DirecTV. The DirecTV chair entertained the possibility of selling the newly combined operation, possibly to either AT&T or Verizon, said Liberty Media Chairman John Malone in an interview with Bloomberg.
“Our relationship will continue to broaden and intensify. It may lead to some more ownership-oriented relationship, or it may not,” Bloomberg quoted Malone as saying about the phone companies.
The deal is complicated, but formulated to minimize the tax liability. Ultimately, both the former Liberty Entertainment and the operations of the current DirecTV will end up becoming subsidiaries of a holding company called DirecTV.
DirecTV recently named as its new CEO former PepsiCo CEO Michael White.