Liberty challenged: spinoff of foreign holdings fails to thrill Wall Street.(Top of the Week)(Liberty Media Corp.)

Broadcasting & Cable, April, 2004 by Higgins, John M.

A month after Liberty Media unveiled a grand plan to juice its stock by dividing the company, investors have sent a message to Chairman John Malone: Is that all there is? In March, Liberty finally detailed its much anticipated plan to spin off the company's international holdings--which include investments in cable systems from Tokyo to Buenos Aires to Prague--into a new company called Liberty Media International.

The company's domestic operations and investments will remain inside Liberty. Wall Street pegs the value of Liberty Media's international business at about $6 billion once it is spun off this summer. Morgan Stanley estimates Liberty's total asset value before the spinoff at about $55 billion. One critical goal for Liberty is to...

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