Author Topic: GLIBA/LVNTA - GCI Liberty  (Read 82544 times)

Munger_Disciple

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Re: GLIBA/LVNTA - GCI Liberty
« Reply #210 on: November 09, 2018, 07:27:37 PM »
Hmmm not sure about your numbers. Without getting into the absolutes... just look at the differential you give for gci being worth what was paid compared to gci being worthless: 13%. So you are saying that a 1.2b swing in value translates to a 13% reduction in nAv?

Regarding TRee I guess youíre right although I wonder why they left it in gliba if thatís the case. Why not let it stay with qvc Until ready for its own tracker or spin.

The deal value of $1.14B includes $175M of preferred stock (The deal was struck at $27.50 in GLIBA shares plus $5 preferred stock for each GCI share, there were 35M GCI common shares outstanding at the time of merger). So GLIBA common equity value was roughly $1B.

I honestly don't know why TREE is a part of GLIBA not QVC, or why they bought it in the first place.
« Last Edit: November 10, 2018, 09:53:04 AM by Munger_Disciple »


thefatbaboon

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Re: GLIBA/LVNTA - GCI Liberty
« Reply #211 on: November 10, 2018, 02:29:58 AM »
They got it originally as part of a much larger IAC investment (that also owned expedia, ticketmaster (now merged into live) and HSN (recently bought outright by q). Liberty was a big shareholder when Diller spun these out over the last 15 years. Tree was a tiny part of a big group of assets. Now they added a little bit one or two times I think more recently so they obviously think itís a good business. Iíve no problem with it (not that anyone cares either way!) but I think itís an exciting business.


vince

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Re: GLIBA/LVNTA - GCI Liberty
« Reply #212 on: November 10, 2018, 09:39:22 AM »
They got it originally as part of a much larger IAC investment (that also owned expedia, ticketmaster (now merged into live) and HSN (recently bought outright by q). Liberty was a big shareholder when Diller spun these out over the last 15 years. Tree was a tiny part of a big group of assets. Now they added a little bit one or two times I think more recently so they obviously think itís a good business. Iíve no problem with it (not that anyone cares either way!) but I think itís an exciting business.

Me too, I think Tree may surprise a lot of folks and be a significant driver of GCI value, certainly has lots of potential

Munger_Disciple

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Re: GLIBA/LVNTA - GCI Liberty
« Reply #213 on: November 10, 2018, 09:57:58 AM »
They got it originally as part of a much larger IAC investment (that also owned expedia, ticketmaster (now merged into live) and HSN (recently bought outright by q). Liberty was a big shareholder when Diller spun these out over the last 15 years. Tree was a tiny part of a big group of assets. Now they added a little bit one or two times I think more recently so they obviously think itís a good business. Iíve no problem with it (not that anyone cares either way!) but I think itís an exciting business.


Thanks, that makes sense. I am fine with Maffei's take on TREE and I hope he is right. I own GLIBA as a CHTR proxy at a discount with some free options thrown in just like everyone else. 

Munger_Disciple

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Re: GLIBA/LVNTA - GCI Liberty
« Reply #214 on: November 12, 2018, 10:17:14 AM »
Regarding GLIBA discount to NAV, Maffei said the following in the prepared remarks segment of the Q3 conference call:

So starting at GCI Liberty. During the quarter, we initiated share repurchase at GCI Liberty and from the period of August 1st through October 31st, we repurchased over $50 million worth of stock. We're doing this to take advantage of, what we call, the double discount on Charter, assuming a full discount to Liberty Broadband and GCI Liberty and you look through to where Charter is trading, the discount is in the low 20% range. And when you look at the Charter, look to price as of today's close, it was about $260 a share of Charter, so we consider pretty attractively buying GCI Liberty at these prices.

In effect Maffei is saying that buying GLIBA is like buying Charter at $260 per share on Nov 8th. Charter closed at $324.65 on Nov 8th. So GLIBA discount on Nov 8th to NAV according to Maffei is roughly 20%. Working backwards, this means that Maffei still thinks that GCI has an enterprise value of roughly $2.5-2.6B FWIW.
« Last Edit: November 12, 2018, 10:19:04 AM by Munger_Disciple »