FWONK

Liberty Media Corp

TMT, Event Driven/Special Sit


Presented:01/12/2018
Price:$34.74
Cap:$7.57B
Current Price:$79.90
Cap:$18.87B

Presented

Date01/12/2018
Price$34.74
Market Cap$7.57B
Ent Value$13.82B
P/E Ratio288.06x
Book Value$22.68
Div Yield0%
Shares O/S218.00M
Ave Daily Vol1,751,189
Short Int6.35%

Current

Price$79.90
Market Cap$18.87B
Liberty Media Corp. engages in the operation and ownership of various media, communications, and entertainment businesses. Its businesses are attributed to three tracking stock groups: the Liberty SiriusXM Group, the Braves Group, and the Formula One Group. It provides equipment and technology that deliver location-based services to wireless users. The company was founded on January 11, 2013 and is headquartered in Englewood, CO.

Publicly traded companies mentioned herein: Ferrari NV (RACE), Liberty Media Corp-Liberty Formula One (FWONK), Live Nation Entertainment Inc (LYV), Time Warner Inc (TWX)

Highlights

It has been one year since Liberty Media completed its acquisition of Formula One (F1), and the presenter views the recent pullback from $40 to ~$34 as a buying opportunity for the long-term (he stressed that the opportunity is over 2-3 years). Taking a valuable media property, operating it under professional management and driving better monetization over the next two years is how investors will get paid. As F1’s media contracts are renegotiated, its sub-par monetization per viewer should rise, driving EBITDA toward $2.23bn in 2020 (up from an estimated ~$1.5bn this year). If his estimates are accurate, investors could see an IRR of 25-30% on the long position over the next three years.

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Idea Discussion

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