10-KPeriod: FY2013

Liberty Media Corp Annual Report, Year Ended Dec 31, 2013

Filed February 28, 2014For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation's (FWONK) 2013 10-K filing highlights a pivotal year marked by significant strategic realignments and the consolidation of Sirius XM Holdings Inc. (SIRIUS XM). Following a spin-off from Starz in early 2013, Liberty Media's primary focus shifted to solidifying its control over SIRIUS XM, a move completed in January 2013, which led to the consolidation of SIRIUS XM's operations and financials. This consolidation significantly boosted Liberty Media's reported revenue and assets. The company also made substantial investments in other media and entertainment companies, notably acquiring a significant stake in Charter Communications in May 2013 and maintaining investments in Live Nation Entertainment. A key development in late 2013 was Liberty Media's proposal to acquire the remaining public shares of SIRIUS XM, aiming for a tax-free transaction that would result in SIRIUS XM shareholders owning approximately 39% of the combined entity. This proposal was under review by SIRIUS XM's special committee at the time of the filing.

Financial Highlights

49 data points
Beta

Revenue

$4.00B

Net Income

$8.78B

219.4% Net Margin

EPS (Diluted)

$24.46

Total Assets

$34.54B

Cash & Equivalents

$1.09B

Free Cash Flow

$1.03B

Financial Statements
Beta
Revenue$4.00B
SG&A Expenses$764.00M
Operating Expenses$3.19B
Operating Income$814.00M
Interest Expense$132.00M
Net Income$8.78B
EPS (Basic)$24.73
EPS (Diluted)$24.46
Shares Outstanding (Basic)355.00M
Shares Outstanding (Diluted)359.00M

Key Highlights

  • 1Consolidation of SIRIUS XM Holdings Inc. (SIRIUS XM) in January 2013, significantly increasing Liberty Media's revenue and assets.
  • 2Acquisition of approximately 27% ownership in Charter Communications in May 2013, establishing a significant equity investment.
  • 3Proposal made in January 2014 to acquire the remaining public shares of SIRIUS XM, aiming to combine operations into a single entity.
  • 4Significant equity investments held in other media and entertainment companies including Live Nation Entertainment.
  • 5Completion of a spin-off from Starz in January 2013, establishing Liberty Media as an independent entity.
  • 6Repurchase of SIRIUS XM shares worth $500 million, executed in tranches, to reduce outstanding shares and potentially impact ownership structure.
  • 7Issuance of $1 billion in convertible senior notes in October 2013 to fund general corporate purposes and repay debt.

Frequently Asked Questions

The most significant strategic move was Liberty Media's acquisition of a controlling interest in SIRIUS XM Holdings Inc. in January 2013, leading to its consolidation for financial reporting. This greatly increased Liberty Media's operational scale and financial footprint.

Liberty Media gained control of SIRIUS XM in early 2013 and began consolidating its results. Towards the end of 2013, Liberty proposed to acquire the remaining public shares of SIRIUS XM. The outcome of this proposal was pending at the time of the filing, with SIRIUS XM's board reviewing it.

Liberty Media holds significant equity investments in other companies, notably Charter Communications, in which it acquired approximately a 27% stake in May 2013. It also holds an investment in Live Nation Entertainment.

Yes, Liberty Media had an authorized share repurchase program for its common stock. Additionally, in October 2013, it issued $1 billion in convertible senior notes, using the proceeds for general corporate purposes and debt repayment. SIRIUS XM also repurchased a significant amount of its own stock from Liberty Media.