(Bloomberg) -- Liberty Media Corp. Chief Executive Officer Greg Maffei will step down at the end of this year after nearly two decades of dealmaking at Chairman John Malone’s media, sports and telecom empire.
Under Maffei’s 19-year leadership, Liberty acquired and invested in businesses including the Atlanta Braves, DirecTV, SiriusXM, Live Nation Entertainment and Formula 1. The 64-year-old was considered an heir apparent to Malone, 83, a founding father of the cable-TV industry and a widely watched investor.
Malone, Liberty’s chairman, will take on the role of interim CEO, as the board and executive team searches for a permanent replacement.
Liberty has announced a series of changes to its famously complicated organization in recent months, as it looked to address stock declines and simplify share ownership. Maffei’s announcement Wednesday coincided with an agreement in which Charter Communications Inc. will acquire Liberty Broadband Corp. in an all-stock transaction that will unite two of Malone’s key holdings.
Liberty also said it plans to split off the Liberty Live Group into a separate public entity that would contain 69.6 million shares of Live Nation Entertainment Inc. and Quint, which offers ticket and hospitality packages to sports and entertainment events. Liberty Media will be an independent company that includes holdings in Formula 1 and MotoGP.
“Our company is simpler and more focused than ever before, which is a perfect capstone for Greg’s accomplished career at Liberty,” Malone said in a statement.
“Malone has been more aggressive in simplifying structures over the last year, not just at Maffei-related companies but at Liberty Global,” said Chris Marangi, co-chief investment officer of value at Gabelli Funds, which holds Liberty Media shares.
In September, Malone restructured another of his investments, Sirius XM Holdings Inc. Under that deal, Sirius became an independent public company separate from Liberty Media.
Liberty Broadband revealed plans in September to merge with Charter, one of the top pay-TV providers in the US.
The announcement Wednesday consolidates two public companies in which Malone has significant interests. He holds a 49% voting stake in Liberty Broadband. Liberty in turn has a 26% interest in Charter on a fully diluted basis, according to Charter officials, and also operates an Alaskan telecom company, GCI. Liberty Broadband will spin off its GCI business via a distribution to stockholders before the acquisition by Charter closes. The transaction is expected to close on June 30, 2027, subject to the GCI spin-off and other customary closing conditions.
“Following today’s announcements at Liberty Media and Liberty Broadband, all the Liberty acquisitions completed during my tenure are now in structures where shareholders can have more direct ownership in their upside,” Maffei, 64, said. “The corporate structure is optimized, and the portfolio companies are in strong positions with talented executive teams in place.”
Some of Malone’s investments have registered steep declines as the pay-TV industry has lost customers to streaming and other forms of video entertainment, like YouTube. The billionaire has been looking to eliminate the multiple classes of stock that had been a hallmark of his investment style.
“Today’s announced transaction will rationalize Liberty Broadband’s trading discount and ultimately provide our shareholders with enhanced liquidity,” Malone said. “The transaction closing timeline reflects my belief in Charter’s operating strategy under the excellent leadership of Chris Winfrey and team and the value creation opportunity for both Charter and Liberty shareholders.”
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