Daily Archives: February 24, 2012

Liberty University may acquire a satellite campus in the rural town of Northfield, Mass., providing a brick-and-mortar outpost for online students from the Northeast and, possibly, a secluded site for an undergraduate honors program.

If the deal goes through, the property would be a gift to Liberty from the family of Steve Green, an Oklahoma billionaire and president of Hobby Lobby, a craft store chain with Christian roots.

“We deeply appreciate the Green family and Hobby Lobby contacting Liberty and making this offer… We appreciate their confidence in Liberty,” said LU Chancellor Jerry Falwell Jr.

The stately, 217-acre campus was built in 1879 by evangelist D.L. Moody on the Connecticut River. For decades, it was home to the Northfield Mount Hermon School, a prestigious boarding school that has since relocated.

The property includes 43 buildings ranging from academic halls to dormitories to an athletics facility with an indoor pool.

In 2009, the Green family bought the site for $100,000 and has since invested $5 million in improvements.

Hobby Lobby recently invited 15 Christian schools and organizations to submit proposals of possible uses of the property.

The goal is to donate the campus to a school or organization with the funds to maintain its century-old buildings and uphold its Christian heritage, said Jerry Pattengale, a college administrator hired by Hobby Lobby to find a new owner.

Liberty responded with strong interest and is a top contender, said Pattengale.

“All I can say at this point is that they’re in a very strong position,” he said. “[Liberty] has a great track record, and they really resonate with the campus. They are certainly one of the very strong candidates.”

Falwell, who visited the campus in January, called it “stunning” and said the buildings are in top-notch condition.

He said Liberty’s proposal is to become part-owners of the campus with another Christian institution. Northfield’s remote location and high cost of upkeep precludes Liberty from wanting to take full ownership.

“Several other colleges are interested,” Falwell said. “We’re hoping that maybe two or three could jointly own the property and could each use it for different purposes.”

The Green family has a storied history of strategically buying properties to donate to Christian schools and churches.

In Lynchburg, the Greens bought the former Ericsson manufacturing plant on Candler’s Mountain Road and donated it to the Falwells. The gift was instrumental to Liberty’s growth and today serves as the hub of campus.

Liberty devoted more than 1,000 hours to its proposal for Northfield. The university became a contender after the C.S. Lewis Foundation, which planned to found a liberal arts college on the site, failed to reach its fundraising goal last December. That prompted Hobby Lobby to look for an owner with a stronger financial picture.

If Liberty becomes a part-owner, their preliminary plans are to develop an honors program there and hold classroom sessions for online students.

“I think we could put together some programs that would benefit our students and would be a real positive,” Falwell said.

Pattengale said the final decision falls with the Green family and is not expected for at least two months. 

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Liberty University may get satellite campus

By Edmund Lee - Thu Feb 23 21:21:37 GMT 2012

John Malone’s Liberty Interactive Corp. (LINTA), the media company that owns stakes in QVC Inc., AOL Inc. (AOL), Time Warner Inc. and others, said it plans to split its shares into two tracking stocks.

The Liberty Interactive tracking stock will include Liberty’s interests in home-shopping services QVC and HSN Inc. (HSNI), as well as QVC bonds and $1.1 billion of Liberty’s publicly traded senior notes and debentures, the company said today. Liberty Ventures will include interests in Expedia Inc. (EXPE), Time Warner (TWX), Time Warner Cable Inc. (TWC) and AOL as well as $1.25 billion of cash and $3 billion of Liberty’s publicly traded debentures.

“We expect this recapitalization to highlight each tracking stock’s operations and financial aspects of the attributed assets, provide greater investor choice, and raise capital while maintaining an optimal capital and tax efficient structure for Liberty,” Chief Executive Officer Greg Maffei said in the statement.

Stockholders will receive 1 share of Liberty Interactive for each Class A or Class B share currently owned. They will get 1 share of Liberty Ventures for every 20 Class A or Class B Liberty shares.

Shares of Englewood, Colorado-based Liberty Interactive gained 2.3 percent to $18.39 at the close in New York. They have advanced 13 percent this year.

To contact the reporter on this story: Edmund Lee in New York at elee310@bloomberg.net

To contact the editor responsible for this story: Ville Heiskanen at vheiskanen@bloomberg.net

Originally posted here:
John Malone’s Liberty Interactive Plans to Split Into Two Tracking Stocks

A Liberty County man confronted a pair of pair of suspected burglars early Wednesday, opening fire at them as they tried to steal his welding machine, officials said.

The homeowner spotted two men about 4:15 a.m. as they pulled onto his property near State Highway 321 and County Road 2274, Liberty County sheriff's deputies said.

He came outside, armed with a gun, when he saw the two taking his welding machine. He shot at the burglars and their black and tan Ford Expedition, deputies said.

They fled without taking the welder, officials said.

About 45 minutes later, a man with a gunshot wound was found inside a black and tan Ford Expedition along west U.S. 90 near Beltway 8 in east Harris County.

A passerby saw the sport utility vehicle slow down and come to a stop at the curb. The man inside the SUV told him to call 911, officials said.

Another motorist took him to East Houston Regional Medical Center with wounds that were not believed to be life-threatening.

Liberty County sheriff's deputies said they believe he is one of the two men who tried to steal the welder.

He has not been identified and the search is continuing for the other man, officials said.

The homeowner is not expected to face criminal charges but the case may be referred to a Liberty County grand jury, officials said.

Anyone with information is asked to contact Liberty County sheriff's deputies at 936-336-4500.

Dale Lezon contributed to this report.

mike.glenn@chron.com

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Liberty County homeowner shoots at suspected burglars

Yesterday, after market close, Liberty Global Inc. ( LBTYA ) declared financial results for the fourth quarter of 2011, which failed to meet our expectations. Despite this, in the previous quarter, the company added a net 380,000 revenue generating units (RGU), up 20% year over year. This is the highest quarterly net RGU addition since 2006.

Quarterly GAAP net loss from continuing operation was $438.2 million or a loss of $1.61 per share compared with a net income of $52.6 million or 5 cents per share in the prior-year quarter. However, fourth-quarter 2011 adjusted (excluding special items) EPS of 10 cents was significantly below the Zacks Consensus Estimate of 21 cents.

Quarterly total revenue of $2,404.5 million was an improvement of 6.9% year over year, which is well below the Zacks Consensus Estimate of $2,615 million. Year-over-year growth of the top line was primarily attributable to the consolidation of German operations.

Quarterly cost of operation was $868.4 million, up 5.1% year over year. Selling, General and Administrative expenses were $462.3 million, up 4.5% year over year. In the fourth quarter of 2011, operating income was $408.2 million, up 5.5% year over year.

During 2011, Liberty Global generated $2,736.6 million of cash from operations compared with $2,329.2 million in 2010. Free cash flow (cash flow from operations less capital expenditures) in 2011 was $809.3 million compared with $638.7 million in 2010.

At the end of 2011, Liberty Global had $2,626.4 million of cash & marketable securities and $24,757.9 million of outstanding debt on its balance sheet compared with $4,921.1 million of cash & marketable securities and $22,462.6 million of outstanding debt on its balance sheet at the end of 2010. At the end of 2011, debt-to-capitalization ratio was 0.87 compared with 0.86 at the end of fiscal 2010.

Subscriber Statistics

At the end of 2011, Liberty Global had 19.5382 million customers in 14 countries. UPC Broadband customer was 16.1163 million. Telnet customer was 2.1985 million. VTR customer was 1.1018 million. Puerto Rico customer was 121,600. Total Single-Play customer was 11.4558 million, up 9.2% year over year. Total Double-Play customer was 2.9131 million, up 10.3% year over year. Total Triple-Play customer was 5.1693 million, up 38.1% year over year.

During the reported quarter, Liberty Global added 380,000 net RGUs including net gains of 229,000 and 230,000 subscribers, respectively, for broadband Internet and telephony services and a net loss of 79,000 subscribers for video services. In the fourth quarter, the company added 282,000 digital video subscribers.

At the end of 2011, Liberty Global had 8.2 million digital cable subscribers with a penetration rate of 46%. Importantly, 50% of total digital cable subscribers are now using HD/DVR services.

Segment wise Results

Revenue from total UPC Broadband division was $1,558.3 million, up 8.9% year over year. Within this segment, revenue from Western Europe was $1,243.3 million, up 8.9% year over year. Revenue from Central and Eastern Europe was $285.3 million, up 9.7% year over year. Revenue from Central and other operation was $29.7 million, up 3.5% year over year.

Telenet revenue was $487.6 million, up 7.8% year over year. VTR revenue was $214.6 million, down 2.1% year over year. Corporate and other revenue was $164.1 million, down 1% year over year.

Businesses Restructuring Update

On July 11, 2011, Liberty Global decided to divest its operations in Australia. Liberty Global holds 54% stake of Austar United Communications Ltd., a leading pay-TV service provider in Australia. Austar announced that Liberty Global and Foxtel, the largest pay-TV operator in Australia, have entered into a definitive agreement, whereby Foxtel will acquire 100% stake of Austar for approximately $2.1 billion. Liberty Global will get around $1.08 billion through this divestiture.

Foxtel is jointly held by Australian telecom giant Telstra, News Ltd., a division of News Corp. ( NWSA ), and Consolidated Media Holdings. All these three shareholders agreed upon the deal. However, the proposed acquisition still needs to clear the Australian regulatory hurdles. However, Liberty Global is confident that this deal will be completed in 2012.

Recommendation

We maintain our long-term Neutral recommendation on Liberty Global. Currently, it holds a short-term Zacks #3 Rank (Hold) on the stock.

 
LIBERTY GLBL-A ( LBTYA ): Free Stock Analysis Report
 
NEWS CORP INC-A ( NWSA ): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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Liberty Global Underperforms - Analyst Blog

Yesterday, after market close, Liberty Global Inc. (NasdaqGS:LBTYA - News) declared financial results for the fourth quarter of 2011, which failed to meet our expectations. Despite this, in the previous quarter, the company added a net 380,000 revenue generating units (:RGU), up 20% year over year. This is the highest quarterly net RGU addition since 2006.

Quarterly GAAP net loss from continuing operation was $438.2 million or a loss of $1.61 per share compared with a net income of $52.6 million or 5 cents per share in the prior-year quarter. However, fourth-quarter 2011 adjusted (excluding special items) EPS of 10 cents was significantly below the Zacks Consensus Estimate of 21 cents.

Quarterly total revenue of $2,404.5 million was an improvement of 6.9% year over year, which is well below the Zacks Consensus Estimate of $2,615 million. Year-over-year growth of the top line was primarily attributable to the consolidation of German operations.

Quarterly cost of operation was $868.4 million, up 5.1% year over year. Selling, General and Administrative expenses were $462.3 million, up 4.5% year over year. In the fourth quarter of 2011, operating income was $408.2 million, up 5.5% year over year.

During 2011, Liberty Global generated $2,736.6 million of cash from operations compared with $2,329.2 million in 2010. Free cash flow (cash flow from operations less capital expenditures) in 2011 was $809.3 million compared with $638.7 million in 2010.

At the end of 2011, Liberty Global had $2,626.4 million of cash & marketable securities and $24,757.9 million of outstanding debt on its balance sheet compared with $4,921.1 million of cash & marketable securities and $22,462.6 million of outstanding debt on its balance sheet at the end of 2010. At the end of 2011, debt-to-capitalization ratio was 0.87 compared with 0.86 at the end of fiscal 2010.

Subscriber Statistics

At the end of 2011, Liberty Global had 19.5382 million customers in 14 countries. UPC Broadband customer was 16.1163 million. Telnet customer was 2.1985 million. VTR customer was 1.1018 million. Puerto Rico customer was 121,600. Total Single-Play customer was 11.4558 million, up 9.2% year over year. Total Double-Play customer was 2.9131 million, up 10.3% year over year. Total Triple-Play customer was 5.1693 million, up 38.1% year over year.

During the reported quarter, Liberty Global added 380,000 net RGUs including net gains of 229,000 and 230,000 subscribers, respectively, for broadband Internet and telephony services and a net loss of 79,000 subscribers for video services. In the fourth quarter, the company added 282,000 digital video subscribers.

At the end of 2011, Liberty Global had 8.2 million digital cable subscribers with a penetration rate of 46%. Importantly, 50% of total digital cable subscribers are now using HD/DVR services.

Segment wise Results

Revenue from total UPC Broadband division was $1,558.3 million, up 8.9% year over year. Within this segment, revenue from Western Europe was $1,243.3 million, up 8.9% year over year. Revenue from Central and Eastern Europe was $285.3 million, up 9.7% year over year. Revenue from Central and other operation was $29.7 million, up 3.5% year over year.

Telenet revenue was $487.6 million, up 7.8% year over year. VTR revenue was $214.6 million, down 2.1% year over year. Corporate and other revenue was $164.1 million, down 1% year over year.

Businesses Restructuring Update

On July 11, 2011, Liberty Global decided to divest its operations in Australia. Liberty Global holds 54% stake of Austar United Communications Ltd., a leading pay-TV service provider in Australia. Austar announced that Liberty Global and Foxtel, the largest pay-TV operator in Australia, have entered into a definitive agreement, whereby Foxtel will acquire 100% stake of Austar for approximately $2.1 billion. Liberty Global will get around $1.08 billion through this divestiture.

Foxtel is jointly held by Australian telecom giant Telstra, News Ltd., a division of News Corp. (NasdaqGS:NWSA - News), and Consolidated Media Holdings. All these three shareholders agreed upon the deal. However, the proposed acquisition still needs to clear the Australian regulatory hurdles. However, Liberty Global is confident that this deal will be completed in 2012.

Recommendation

We maintain our long-term Neutral recommendation on Liberty Global. Currently, it holds a short-term Zacks #3 Rank (Hold) on the stock.

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Liberty Global Underperforms

ENGLEWOOD, Colo.--(BUSINESS WIRE)--

Liberty Interactive Corporation (Nasdaq: LINTA, LINTB) (“Liberty”) today announced that its board of directors has approved the recapitalization of its common stock into shares of the corresponding series of two new tracking stocks, Liberty Interactive and Liberty Ventures.

“We are pleased to announce the Board’s approval to recapitalize Liberty into two tracking stocks,” said Greg Maffei, President and CEO of Liberty. “We expect this recapitalization to highlight each tracking stock’s operations and financial aspects of the attributed assets, provide greater investor choice, and raise capital while maintaining an optimal capital and tax efficient structure for Liberty.”

The Liberty Interactive tracking stock group initially will have attributed to it QVC, the eCommerce companies, a 34% stake in HSN, approximately $500 million of cash, $2 billion principal amount of QVC’s bonds, QVC’s $2 billion bank credit facility and approximately $1.1 billion principal amount of Liberty’s publicly traded senior notes and debentures. Cash to be attributed to Liberty Interactive and Liberty Ventures will come from various sources including cash on hand, cash from operations and proceeds from QVC’s bank credit facility with an expected balance at closing of $1.3-1.5 billion.

The Liberty Ventures tracking stock group initially will have attributed to it Liberty’s interests in Expedia, TripAdvisor, Time Warner, Time Warner Cable, AOL, Interval Leisure Group, Tree.com and Liberty’s green-energy investments, approximately $1.25 billion of cash, additional cash raised from the exercise of Liberty Ventures subscription rights, and approximately $3 billion principal amount of Liberty’s publicly traded exchangeable debentures.

In the recapitalization, Liberty stockholders will receive one share of the corresponding series of Liberty Interactive group tracking stock for each share of series A or series B Liberty common stock they own and one share of the corresponding series of Liberty Ventures group tracking stock for every 20 shares of series A or series B Liberty common stock they own. In addition, stockholders will also receive a subscription right to acquire one additional series A or series B share for every three shares of series A or three shares of series B Liberty Ventures tracking stock they receive in the recapitalization.

The subscription rights are being issued to raise capital for general corporate purposes of the Liberty Ventures tracking stock group, including investment in new business opportunities to be attributed to that group. The subscription rights will:

Enable the holders to acquire shares of the applicable series of Liberty Ventures common stock at a 20% discount to the 20 trading day volume weighted average trading price of the Liberty Ventures tracking stock following the closing of the recapitalization Become publicly traded, once the exercise price has been established Expire forty trading days following the closing of the recapitalization

The proposed recapitalization is intended to be tax-free to stockholders and its completion will be subject to various conditions, including the affirmative vote of a majority of the voting power of Liberty’s outstanding shares present in person or by proxy at the stockholder meeting, voting together as a single class, and the receipt of a tax opinion from counsel. Subject to the satisfaction of the conditions to closing, the recapitalization is currently expected to occur this summer.

This announcement and Liberty’s fourth quarter and year end 2011 earnings will be discussed on a conference call today at 11:00 a.m. (ET).

Please call Premiere Conferencing at (888) 452-4034 or (719) 325-2145 at least 10 minutes prior to the call. Callers will need to be on a touch-tone telephone to ask questions. The conference administrator will provide instructions on how to use the polling feature.

Replays of the conference call can be accessed through 2:00 p.m. (ET) on March 1st, by dialing (888) 203-1112 or (719) 457-0820 plus the passcode 1032754#.

In addition, the conference call will be broadcast live via the Internet. All interested participants should visit the Liberty Interactive Corporation website at http://www.libertyinteractive.com/events to register for the web cast. Links to the press release and replays of the call will also be available on the Liberty Interactive website. The conference call and related materials will be archived on the website for one year.

About Liberty Interactive Corporation

Liberty (Nasdaq: LINTA, LINTB) owns interests in a broad range video and online commerce businesses including QVC, Provide Commerce, Backcountry.com, Celebrate Interactive, Bodybuilding.com, Evite, and Expedia.

Forward-Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the proposed recapitalization of Liberty’s common stock, a related rights offering and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, the satisfaction of conditions to the proposed recapitalization. These forward looking statements speak only as of the date of this press release, and Liberty expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Liberty, including the most recent Form 10-K, for additional information about Liberty and about the risks and uncertainties related to Liberty's business which may affect the statements made in this press release.

Additional Information

Nothing in this press release shall constitute a solicitation to buy or an offer to sell shares of Liberty’s proposed new tracking stock or Liberty’s existing common stock. The offer and sale of shares of the proposed tracking stock will only be made pursuant to an effective registration statement. Liberty stockholders and other investors are urged to read the registration statement to be filed with the SEC, including the proxy statement/prospectus to be contained therein, because they will contain important information about the issuance of shares of the proposed tracking stock. Copies of Liberty’s SEC filings are available free of charge at the SEC’s website (http://www.sec.gov). Copies of the filings together with the materials incorporated by reference therein will also be available, without charge, by directing a request to Liberty Interactive Corporation, 12300 Liberty Boulevard, Englewood, Colorado 80112, Attention: Investor Relations, Telephone: (720) 875-5408.

Participants in a Solicitation

The directors and executive officers of Liberty and other persons may be deemed to be participants in the solicitation of proxies in respect of proposals relating to the approval of the issuance of the new tracking stock. Information regarding the directors and executive officers of Liberty and other participants in the proxy solicitation and a description of their respective direct and indirect interests, by
security holdings or otherwise, will be available in the proxy materials to be filed with the SEC.

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Liberty Interactive Corporation Announces Plan to Recapitalize into Two Tracking Stocks