Liberty Media Corp has confirmed that it intends to spin off its cable assets, including a stake in Charter Communications, into a new publicly traded company called Liberty Broadband. In a statement issued late last week, Liberty Media CEO Greg Maffei commented: ‘We believe a separate Liberty Broadband will offer investors greater choice and transparency, and is well-timed with Charter’s agreements with Comcast, which will result in Charter owning or serving over eight million video customers’.
Maffei said the spin-off is likely to be completed by the end of the year. The announcement comes at a time when the company is busy pushing ahead with its domestic expansion plans. On 28 April Charter Communications said it would pay Comcast USD7.3 billion for 1.4 million cable subscribers and trade about 1.6 million subscribers in different parts of the country – in a deal that depends on regulatory approval of Comcast’s previously announced takeover of Time Warner Cable (TWC). Charter will also own one-third of a new cable company that will be spun off from Comcast.