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Print 13 comment(s) - last by xKeGSx.. on May 5 at 11:18 AM

DirecTV to merge with Liberty Entertainment

DirecTV is the nation's largest satellite TV provider and the company credits its continued success despite the poor economy on the fact that it targets more affluent subscribers who are less likely to cancel service.

DirecTV Group Inc. announced today that it would merge with majority shareholder Liberty Entertainment after Liberty Entertainment is spun off from its parent company Liberty Media Corporation (LMC). The spinoff is an attempt by LMC to simplify its capital structure reports The Wall Street Journal. DirecTV shares are reportedly up 2.8% in premarket trading to $25.26 on word of the merger.

Liberty Entertainment already holds 54% of DirecTV and post spinoff, the company will hold the DirecTV stake, three regional sports networks, and stakes in the Game Show Network and FUN Technologies. As part of the merger agreement shareholders in Liberty Entertainment will get a 0.9 share in Liberty Entertainment and retain 0.1 share of Liberty Starz stock.

The merged Liberty Entertainment and DirecTV business will continue to operate under the DirecTV brand. DirecTV shareholders will get one share of DirecTV Class A common stock for each share they currently own. Liberty Entertainment shareholders will reportedly get 1.11 shares for each Liberty Entertainment share they hold. DirecTV will continue to operate with the same CEO and board after the merger. The WSJ reports that the spin-off and merger is expected to be complete by the end of 2009.

DirecTV stepped in and saved Sirius XM from certain doom in February for a large portion of the company.



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RE: So...
By xKeGSx on 5/4/2009 3:03:40 PM , Rating: 2
A lot has changed with regards to accounting practices. Without getting into it I just hope you can trust me that it has. ;)


RE: So...
By Dianoda on 5/4/2009 6:34:32 PM , Rating: 2
Well, I assume you're talking about accounting for mergers, controlling interests, and non-controlling interests. So the difference in accounting for the merger under the recent revision to FASB 141 and the combined firms issuing one set of financials vs. Liberty Entertainment issuing financials consolidated with DirecTV and DirecTV issuing its own financials. Sure, that cuts out some accounting work, but does the totality of efficiencies and net assets acquired in the transaction balance out the cost of issuing a substantial amount of additional equity? Liberty Entertainment apparently thinks so...


RE: So...
By xKeGSx on 5/5/2009 11:18:23 AM , Rating: 2
Not to mention before would be accounting for only there portion of the net income dividends assets etc. before the merger. Now it's all one and they'll account for everything and eliminate duplicate entries because they are now one company etc etc.


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