Please ensure Javascript is enabled for purposes of website accessibility

What Happened to Liberty Media Corp. Shares Today

By Jeremy Bowman - Apr 18, 2016 at 4:10PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The media giant split its stock into three, but investors needn't worry.

Atlanta Braves.svg

Liberty Investors are now direct owners of the Atlanta Braves. Image source: Atlanta Braves.

What: Shares of Liberty Media Corp. (FWONA) may have given some unsuspecting investors heart problems as some financial news outlets reported the stock down as much as 51%. In reality, the stock is being split into three separate tracking so there is no real loss of value on the part of investors.

So what: After markets closed on Friday, Liberty announced the completion of a previously announced transaction that split its common stock into three new tracking stocks: the Liberty Braves common stock, the Liberty Media common stock, and the Liberty Sirius XM common stock.  

The transaction, or recapitalization as the company is calling it, will exchange current investors' shares for one share of Liberty Sirius XM stock, 0.1 of share of Liberty Braves stock, and 0.25 share of the new Liberty Media stock. The company expected the new stocks to begin trading today under the following tickers.

Nasdaq Global Select Market

Tracking Stock

Symbol

Series A Liberty SiriusXM common stock LSXMA
Series B Liberty SiriusXM common stock LSXMB
Series C Liberty SiriusXM common stock LSXMK
Series A Liberty Media common stock LMCA
Series C Liberty Media common stock LMCK
Series A Liberty Braves common stock BATRA
Series C Liberty Braves common stock BATRK

OTC Markets

Tracking Stock

Symbol

Series B Liberty Media common stock LMCB
Series B Liberty Braves common stock BATRB

Data source: Liberty Media.

Now what: Liberty had originally announced the plans last November, and Liberty Chairman John Malone has used the tactic previously to separate Liberty Interactive, the home shopping division, from the rest of the media company.  

The new tracking stocks will allow investors to direct money specifically into one of the company's disparate entities, and it will also allow the different segments to enact their own policies regarding raising capital, repurchasing shares, or paying dividends. Liberty CEO Greg Maffei also said the tracking stocks are a way to pinpoint the market discount to the company's net asset value, a sign that it believes its shares to be undervalued. 

For Liberty shareholders who were happy with the old stock, little changes from today's transaction.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Liberty Media Corporation Stock Quote
Liberty Media Corporation
FWONA

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
332%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.