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GAMCO Investors establishes position in Liberty Media

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GAMCO adds new position in Liberty Media Corporation

Mario Gabelli’s GAMCO Investors started a new position in Liberty Media Corporation Class C (LMCK) during 3Q14. The position accounted for 0.36% of the fund’s third-quarter portfolio.

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Liberty Media Corporation overview

Liberty Media Corporation owns interests in a range of communications and entertainment businesses, including the following entities:

  • Sirius XM Holdings Inc.
  • Atlanta National League Baseball Club Inc. (ANLBC)
  • Live Nation Entertainment
  • Time Warner Inc.
  • Viacom Inc.

Sirius XM provides a subscription-based satellite radio service. ANLBC owns the Atlanta Braves, a major league baseball club, and some of the Atlanta Braves’ minor league clubs.

Liberty Media completes spin-off of cable business

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Recently, Liberty Media finished the previously announced spin-off of its cable business Liberty Broadband. Among other things, the cable business comprises Liberty Media’s interests in the subsidiary TruePosition, Charter Communications, and a minority equity investment in Time Warner Cable. A stock exchange filing in July noted that Liberty planned to carry out the spin-off by giving its shareholders dividends of all common shares and subscription rights so that stockholders can purchase Liberty’s Series C common shares. The filing said that the stock dividend will be worth up to $4.8 billion.

After they had abandoned a bid for the complete control of Sirius XM in March, Liberty had initially planned to reclassify its common shares into two tracking stocks—Liberty Media Group and Liberty Broadband Group. The move aimed to fund the expansion of Charter Communications. In May, Liberty decided not to create tracking stocks and opted to spin off its cable businesses instead.

Sirius XM drives results in 3Q14

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Liberty Media’s revenue increased to $1.18 billion from $1.10 billion mainly due to growth at its subsidiary Sirius XM, which posted net income of $33 million or $0.10 per share in its third quarter. Sirius XM reported revenue of $1.1 billion and generated a $136-million profit. Liberty Media noted in its 10Q filing that it acquired a 27% interest in Charter Communications for approximately $2.6 billion during the nine months ended September 30, 2013.

Other 3Q14 activities at GAMCO

GAMCO Investors also added new positions in TRW Automotive Holdings Corp. (TRW) and Weatherford International in the third quarter. GAMCO acquired stakes in Concur Technologies Inc. (CNQR), Sigma-Aldrich Corp. (SIAL), and Bally Technologies Inc. (BYI), all of which are currently involved in merger and acquisition transactions. The fund added to its positions in Sony Corp. ADR, the Interpublic Group of Companies Inc., and Chemtura Corporation as well.

The next part of this series will highlight GAMCO position change in Concur Technologies.

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