Under federal tax law, the inclusion of an operating asset -– the Braves –- in the deal can make the transaction tax-free, potentially saving Liberty hundreds of millions of dollars in capital gains tax on the appreciation of its Time Warner stock.
Does Liberty Media not have a controlling interest in DirectTV? Does anyone not see the company that owns the Extra Innings package owning a team as a potential problem?
Baseball has already survived the ownership by media companies like Time Warner, Tribune, and Fox as well as teams like the Yankees and Red Sox owning their own networks.
Liberty doesn't own controlling interest in Directv yet. A deal has been struck and it will likely close sometime in the summer, after FCC and DOJ approvals.
I don't think Liberty wants or needs the Atlanta Braves. It was just a way to make the deal tax free, and Time Warner really didn't want the Braves anymore. I'm sure Liberty will start shopping the Braves as soon as they can. They don't have to sell, but they are more like a mutual fund than anything else. The only thing they own 100% of is Starz movie channel. They aren't operators, they are deal guys.
Comment status: comments have been closed. Baseball Toaster is now out of business.
I don't think Liberty wants or needs the Atlanta Braves. It was just a way to make the deal tax free, and Time Warner really didn't want the Braves anymore. I'm sure Liberty will start shopping the Braves as soon as they can. They don't have to sell, but they are more like a mutual fund than anything else. The only thing they own 100% of is Starz movie channel. They aren't operators, they are deal guys.
Comment status: comments have been closed. Baseball Toaster is now out of business.