Liberty Media Corp., a Centennial-based holding company, announced Wednesday that it will spin off its Starz cable channels into a separate company, immediately stirring questions about the company's future in the Denver area.

The separation should be completed by the end of the year, creating a new, publicly held company.

"I think in this market, people always like pure plays," said Matt Harrigan, a Denver-based analyst for Wunderlich Securities. "It just makes sense to keep them different and separate."

The separation is meant to accomplish several goals, including greater clarity for investors regarding the business operations of Starz, improving its capital structure, and creating two "currencies" that can be used for acquisitions, said Greg Maffei, president and chief executive of Liberty.

Seeking to quell rumors of a major shift toward Los Angeles, Starz told The Denver Post that the split will not affect its operations at the Denver location.

Maffei also hopes that this move will produce greater liquidity for Liberty Media as it attempts to buy up more stock in the satellite radio broadcaster SiriusXM and the events promoter Live Nation, further increasing ownership in those companies.

Liberty Media expects the spinoff to be tax-free for its stakeholders.

Starz will consist of 100 percent of Starz LLC, about $1.5 billion in debt, and a yet-to-be determined amount of cash.

Chris Albrecht, currently the CEO of Starz LLC, will remain in his position.

"I think they're very committed to Chris Albrecht and what he can do," Harrigan said.

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Liberty Media and Starz to become separate companies