John Malone’s Liberty Interactive Corp. announced a complex deal that would help to eliminate its “tracking stock” structure and includes the acquisition of Alaska-based telecom company General Communication Inc. (GCI) for $1.12 billion, Reuters reports.
The deal would give Liberty greater access to the equity market and flexibility to make acquisitions, the report notes. GCI would be combined with Liberty Ventures, the holding entity for Liberty Interactive’s cable TV and other assets.
“Liberty Ventures is one of Liberty Interactive’s two tracking stocks — a type of common stock that ‘tracks’ or depends on the financial performance of a specific business unit of a company rather than the operations of a company as a whole,” Reuters notes. “The other tracking stock — QVC Group — reflects the value of Liberty Interactive’s home-shopping businesses including HSN and QVC.”
“The company said eliminating the tracking stock structure would make the stocks eligible for inclusion in stock indexes, allowing them easier access to the equity market,” Reuters adds.
The companies outlined the deal, including its anticipated benefits to both companies, in a detailed press release. You can read an edited version of the release by clicking here.