Liberty Media Del Stock Price, News & Analysis
Company Description
Liberty Media Corporation’s Series A Liberty SiriusXM common stock (ticker LSXMA) represents an interest in a group of media and entertainment assets historically associated with Liberty Media’s Liberty SiriusXM tracking stock. According to Liberty Media’s description, the company owns interests in a broad range of media, communications and entertainment businesses that are organized into distinct tracking stock groups. These groups have included the Liberty Braves Group, the Liberty Media Group and the Liberty SiriusXM Group.
The Liberty SiriusXM Group, which underlies LSXMA, reflects Liberty Media’s interest in Sirius XM Holdings Inc., a major satellite and audio entertainment company. Liberty Media states that the Liberty SiriusXM Group consists of its interest in Sirius XM Holdings, while other tracking stock groups reflect different underlying assets. LSXMA is one of the equity securities that allows investors to gain exposure to the economic performance of this specific group within Liberty Media’s broader structure.
The Liberty Braves Group, a separate tracking stock group within Liberty Media, has consisted of Braves Holdings, LLC, which indirectly owns the Atlanta Braves Major League Baseball club, the Braves’ stadium and associated real estate projects. Liberty Media has also described the Liberty Media Group as consisting of its interest in Live Nation Entertainment, Inc., certain other minority investments (including interests in Time Warner Inc. and Viacom Inc.), and an inter-group interest in the Liberty Braves Group. These descriptions illustrate Liberty Media’s use of tracking stocks to attribute distinct sets of assets and liabilities to different groups for public-market investors.
Atlanta Braves Holdings, Inc. (“ABH”), which is now a separate public company listed on Nasdaq under the symbols BATRA and BATRK, reports that on July 18, 2023 Liberty Media completed a split-off of the Braves and its associated mixed-use development into ABH. ABH states that its businesses and assets consist of Braves Holdings, LLC, the owner and operator of the Atlanta Braves Major League Baseball Club, and certain assets and liabilities associated with the Braves’ ballpark and mixed-use development called The Battery Atlanta. Prior to this split-off, these assets were attributed to Liberty Media’s Braves Group tracking stock.
ABH’s public disclosures explain that its revenue is reported in two primary categories: baseball revenue and mixed-use development revenue. Baseball revenue is described as being derived from two main sources on an annual basis: (i) baseball event revenue, which includes ticket sales, concessions, advertising sponsorships, suites and premium seat fees, and (ii) broadcasting revenue, which includes national and local broadcast rights. Mixed-use development revenue is described as being derived from The Battery Atlanta mixed-use facilities and primarily includes rental income, along with related items such as tenant recoveries and parking revenue.
ABH reports that it disaggregates baseball revenue into baseball event, broadcasting, retail and licensing, and other revenue. Its public financial statements and press releases show that it tracks operating performance using measures such as operating income and Adjusted OIBDA, with Adjusted OIBDA defined by ABH as operating income (loss) plus depreciation and amortization, stock-based compensation, and certain other specified items. ABH states that it views Adjusted OIBDA as an important indicator of the operational strength and performance of its businesses and uses it for analytical comparisons and benchmarking.
Corporate updates from ABH explain that the split-off from Liberty Media resulted in ABH becoming a standalone public company, with historical results reflecting the combination of the Braves Group until the date of the split-off and consolidated reporting thereafter. ABH’s disclosures also highlight that its operations include the Atlanta Braves Major League Baseball club and The Battery Atlanta mixed-use development, with revenue and costs analyzed by these segments.
Liberty Media’s SEC filings for its tracking stock groups, including the Liberty SiriusXM Group, continue to provide information for LSXMA holders on the underlying assets and financial performance associated with the Liberty SiriusXM tracking stock. While ABH is now separate and trades under its own symbols, Liberty Media’s tracking stock structure, including LSXMA, remains a way for investors to follow and invest in specific attributed groups within Liberty Media’s overall portfolio.
Business Segments and Revenue Sources
Based on the available disclosures, Liberty Media’s historical tracking stock groups have been associated with distinct business segments:
- Liberty SiriusXM Group: Consists of Liberty Media’s interest in Sirius XM Holdings Inc.
- Liberty Braves Group: Consists of Braves Holdings, LLC, which indirectly owns the Atlanta Braves Major League Baseball club, the Braves’ stadium and associated real estate projects. These assets were later split off into Atlanta Braves Holdings, Inc.
- Liberty Media Group: Consists of Liberty Media’s interest in Live Nation Entertainment, Inc., other minority investments (including Time Warner Inc. and Viacom Inc.), and an inter-group interest in the Liberty Braves Group.
ABH’s segment reporting provides additional detail on how a former Liberty tracking group operates when separated into its own company. ABH distinguishes between baseball and mixed-use development segments and describes the underlying revenue streams as noted above. These disclosures offer insight into how Liberty Media’s attributed groups may be analyzed in terms of operating performance and asset composition.
Relationship Between Liberty Media and Atlanta Braves Holdings
ABH’s corporate updates state that, as of the split-off date in July 2023, Liberty Media completed the separation of the Braves and associated mixed-use development into ABH. ABH explains that the Braves Holdings, LLC business and The Battery Atlanta assets were previously attributed to Liberty Media’s Braves Group tracking stock. Following the split-off, ABH became a separate public company, while Liberty Media continues to manage other tracking stock groups, including the Liberty SiriusXM Group represented by LSXMA.
ABH also reports that it participates in Liberty Media’s earnings conference calls, with management available to answer questions regarding both Liberty Media and ABH. These disclosures indicate an ongoing relationship in terms of investor communications, even though ABH is a separate issuer with its own common stock.
Corporate Governance and Ownership Developments at Atlanta Braves Holdings
ABH has disclosed several governance and ownership-related developments that provide context for investors following Liberty Media’s historical Braves-related tracking stock. In a corporate governance update, ABH reported that Terry McGuirk, Chairman and CEO of Braves Holdings, LLC, entered into shareholder arrangements with Dr. John Malone. ABH states that Malone granted McGuirk a proxy to vote a significant portion of ABH Series B common stock on director elections, executive compensation approvals and other routine matters, and granted McGuirk a right of first refusal on future transfers of those shares and certain appreciation rights. ABH notes that these arrangements were approved by Major League Baseball and will be described in further detail in SEC filings by Malone and McGuirk.
ABH also reports that Atlanta Braves Holdings and Liberty Media intend to begin transitioning various general and administrative services previously provided by Liberty Media to ABH’s management, including legal, tax, accounting, treasury, information technology and cybersecurity services. This transition is described as part of ABH’s progression as a standalone public company following the split-off from Liberty Media.
Use of Non-GAAP Measures
ABH’s press releases and financial statements emphasize the use of Adjusted OIBDA as a non-GAAP financial measure. ABH defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, restructuring, acquisition and impairment charges. ABH explains that this measure is used to identify items that are not directly reflective of ongoing business performance and to support analytical comparisons and benchmarking between businesses.