Author Topic: GLIBA/LVNTA - GCI Liberty  (Read 92425 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 »

Gamecock-YT

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Re: GLIBA/LVNTA - GCI Liberty
« Reply #215 on: March 05, 2019, 04:49:21 PM »
Coming up on the magical one year anniversary of the merger: MARCH 9, 2019

Part of me wonders since there's the double discount still in place if it makes sense to keep GCI and Broadband separate and keeping buying back the GCI stock? At some point if/when the discount collapses, then it would make sense to merge the two companies?


Maffei at the last CC said:

Quote
So starting at GCI Liberty, at the corporate level we continued share repurchases. The November 1 and January 31, we repurchased over $100 million worth of stock. We aim to take advantage of the double discount at GCI Liberty, the low and the low Charter price. That double discount is because look through with the discount GCI Liberty has Liberty Broadband and then turn Liberty Broadband has to Charter.

To-date is you look at that double discount, we've effectively repurchased a Charter in average look through price of around $270 and that look through price today is up to $290 and obviously Charter itself is considerably higher. So we're excited about trying to take advantage of both, the growth in Charter and that double discount.


SI

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Re: GLIBA/LVNTA - GCI Liberty
« Reply #216 on: March 05, 2019, 05:39:36 PM »
Issue there is there isnít a ton of cash flow. They did $101mn buybacks in that holiday period which is ~35-40% of their annual ebitda, fcf obviously being much less.
« Last Edit: March 05, 2019, 10:03:39 PM by SI »

scorpioncapital

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Re: GLIBA/LVNTA - GCI Liberty
« Reply #217 on: March 06, 2019, 01:23:01 AM »
My experience with these kinds of companies - or even majority owned single companies is discounts fluctuate but almost never close. Only the end to the control or see through structure will.


WayWardCloud

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Re: GLIBA/LVNTA - GCI Liberty
« Reply #218 on: November 12, 2019, 11:57:06 AM »
Does anyone have a guess why GLIBA is up 5.23% today while Charter is down 0.17%, LBRDA is down 0.13% and TREE is up 1.81%?

Any news about General Communication/the Alaskan economy/the FCC rural help regulation that I missed maybe?

NotSoWise

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Re: GLIBA/LVNTA - GCI Liberty
« Reply #219 on: November 12, 2019, 01:06:04 PM »
GLIBA results call was on 11th Nov. In short Alaskan business did reasonably well - worth to read quarterly call transcript for more details. Other smaller contributions possibly were LendingTree valuation mentioned on the call and potentially discussion about growing discount to NAV.