Liberty Interactive Corp. plans to reorganize its tracking
stocks as part of a recapitalization effort, creating new holdings
called QVC Group and Liberty TripAdvisor Holdings.
Liberty Interactive operates and owns interests in a broad range
of digital commerce businesses. The interests currently are
attributed to two tracking stocks: Liberty Interactive Group
(LINTA, LINTB) and Liberty Ventures Group (LVNTA, LVNTB). The
Interactive Group is primarily focused on digital commerce, while
the Ventures Group is comprised of Liberty's holdings in
TripAdvisor Inc. (TRIP), its interest in Expedia Inc. (EXPE) and
other assets.
A tracking stock is issued by a parent company that follows the
performance of a specific division generally without having claim
on the assets of that division.
The new QVC Group class of stock will be created out of the
Liberty Interactive Group and track the value of QVC Inc. and
Liberty's roughly 38% interest in HSN Inc. (HSNI). The other assets
and liabilities that are currently part of the Liberty Interactive
tracking stock, including Liberty's e-commerce companies, will be
attributed to a new Liberty Digital Commerce tracking stock.
Liberty said it was making the change to "provide greater
clarity regarding QVC's strong operating metrics, such as its
leadership in mobile commerce."
In the recapitalization, holders of Liberty Interactive Group
tracking stock will receive a distribution of the new Liberty
Digital Commerce tracking stock and the name of Liberty Interactive
Group tracking stock will be changed to QVC Group tracking
stock.
Liberty Digital shares are expected to trade under "LDCA" and
"LDCB" and QVC Group shares are expected to trade under "QVCA" and
"QVCB."
Separately, Liberty Interactive Corp.'s other tracking stock
group, Liberty Ventures Group, plans to spin off is ownership
interest in TripAdvisor into a newly formed company called Liberty
TripAdvisor Holdings. The new company would be comprised of
Liberty's 22% economic and 57% voting interest in TripAdvisor, as
well as Liberty's BuySeasons business. In the spin-off, holders of
Liberty Ventures stock would receive one share of the new
TripAdvisor Holdings stock for each Ventures share held.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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