Liberty Posted March 15, 2014 Share Posted March 15, 2014 http://www.sec.gov/Archives/edgar/data/1355096/000110465914019426/a14-8086_1425.htm Maffei on ecommerce tracker's potential value. Link to comment Share on other sites More sharing options...
jay21 Posted March 23, 2014 Share Posted March 23, 2014 http://www.sec.gov/Archives/edgar/data/1355096/000110465914019426/a14-8086_1425.htm Maffei on ecommerce tracker's potential value. Thanks. I think you guys are right on CommerceHub. Here are a few comments Maffei has made recently: "We’ve got a diversity of businesses which are some which are in better shape and some which are less strong. I think the ones that are the most attractive are probably two. CommerceHub, which is not really an e-commerce business, it’s digital, it’s not a customer-facing business. It’s more of a SaaS kind of model where it helps people drop-ship and provides information flows across drop-shipping. Tremendous growth, tremendous business, high free cash flow margins. Secondly probably is Bodybuilding.com, which has had excellent growth as well. Lots of differentiation because of its body space, kind of a social network where you outline what your workout program is, about 1.5 million people have done that, as well as content on the site about how to achieve your goals in terms of workouts, and then commerce on the site in terms of what products we can sell you that’ll help you meet those goals. I think that content/commerce or content, community and commerce triangle has worked very well for Bodybuilding and that is excellent growth." "As far as which businesses we love, that’s like the one about all your children, you’re reluctant to say which one you like even if it’s one of them or another that are making you less or more happy. That having been said, just as practical matter the fastest growth assets in there have been CommerceHub and Bodybuilding over the last several years. And I don’t think that’s going to change. I think there are plans, good investments plans that provide around RedEnvelope, there are good investments plans around Backcountry, but unfortunately some of Backcountry’s results are going to be impacted by weather. Let it snow early, let it be cold early in San Francisco, New York, LA, that will make us very happy. And then at BuyCostumes we’re probably in the toughest of somewhat of a turnaround mode. And I think management there has got a good plan, but it’s probably the toughest space. As far as the overall growth rates, I think we’ve been looking at numbers which have been averaging sort of mid-teens plus, and I don’t think that’s an unrealistic set of assumptions. It could get better, but that’s probably a conservative set." Link to comment Share on other sites More sharing options...
jmp8822 Posted May 5, 2014 Share Posted May 5, 2014 I am trying to get a grasp of how the tracking stocks will work, and would like some insight if anyone has a history with the Liberty trackers. If you buy LINTA today, you own QVC and the E-commerce business. After the tracking stock split, you will have shares of two tracking stocks (one QVC, one e-commerce). The way I understand it, nothing actually changed balance sheet/income statement wise because it wasn't a true spinoff. What confuses me is if you buy QVC for instance at a 'discount', how does Liberty make that permanent, i.e. a straight spinoff makes sense, but what might happen to the price if the merge the tracking stocks again? Will each tracking stock file its own financials? Mostly just trying to solve the risks/clarity versus a traditional spinoff. Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted May 5, 2014 Share Posted May 5, 2014 You can look at the SEC filings for LINTA/B and LVNTA/B. The financials will include information on both companies since they are responsible for the overall company's debt. They also make one filing to the IRS I believe. 2a- After spinning off, the share counts of the trackers might change due to buybacks. If the trackers merge (which has happened in the past with Starz), then the company will have to consummate the merger at a "fair" price. Unfortunately, there are conflicts of interest between the trackers!!! Malone for example might own a greater percentage of one tracker than the other. So a merger of trackers might be unfair to one set of shareholders. 2b- Because buybacks are likely, Malone will own more of one tracker than the other. This creates temptation for conflicts of interest as he might want to benefit one tracker over another. I've concluded that conflicts of interest are inherent in the tracking stock structure. I don't see a way where you can easily ensure fair dealing. If any tracker raises debt, it slightly hurts the other trackers as they are liable for each others' liabilities (debt, taxes, etc.). 3- There are tax advantages to a tracker over a spinoff. 4- Spinoffs can screw debtholders. Malone might do a spinoff because he gains a little bit from screwing over debtholders. Some of Liberty's debt are light on covenants and allow the company to spin off a huge chunk of its assets, hurting the company's ability to repay its debt. Link to comment Share on other sites More sharing options...
Liberty Posted May 8, 2014 Share Posted May 8, 2014 Q1: http://ir.libertyinteractive.com/releasedetail.cfm?ReleaseID=846446 Attributed to Liberty Interactive Group Grew QVC US revenue by 1% and adjusted OIBDA(2) by 3% in the first quarter QVC US operating income increased by 3% QVC.com revenue as a percent of total US revenue increased to 45%, a 327 bps increase QVC US mobile penetration was 37% of QVC.com orders Repurchased $224 million LINTA shares from February 1 to April 30, 2014 "QVC expanded adjusted OIBDA margins in the US. On the international front, QVC posted very strong results in the UK, experienced rapid growth in its China joint venture, adding over 10 million homes in the quarter, and announced QVC France, with an expected launch in the summer of 2015. We continue to progress with the creation of the Liberty Digital Commerce Group tracking stock and expect to file the S-4 with the SEC shortly," stated Greg Maffei, Liberty President and CEO. Link to comment Share on other sites More sharing options...
Yours Truly Posted May 8, 2014 Share Posted May 8, 2014 It's disappointing that no firm date has been set for the separation between QVC Group and Liberty Digital but the good news is that share repurchases are continuing under LINTA. Anyone find it strange that there will be two seperate publicly traded companies for one company (TripAdvisor and Liberty TripAdvisor)? Link to comment Share on other sites More sharing options...
Liberty Posted May 8, 2014 Share Posted May 8, 2014 It's disappointing that no firm date has been set for the separation between QVC Group and Liberty Digital but the good news is that share repurchases are continuing under LINTA. If you look at the price at which they've been buying back: From February 1, 2014 through April 30, 2014, Liberty repurchased approximately 7.9 million Series A Liberty Interactive shares (Nasdaq: LINTA) at an average cost per share of $28.54 for total cash consideration of $224.1 million. Since the creation of the Liberty Interactive stock in May 2006, Liberty has repurchased approximately 237.9 million shares at an average cost per share of $20.29 for aggregate cash consideration of $4.8 billion. These repurchases represent approximately 33.9% of the shares outstanding at the time of creation of the Liberty Interactive stock. All repurchases up to August 9, 2012, the date on which the Liberty Interactive stock was recapitalized to create the Liberty Ventures stock, were comprised of shares of the combined stocks. The total remaining repurchase authorization for Liberty Interactive Group stock is approximately $873 million. It seems like they might not be in a hurry to create the new trackers because they can buy back more at prices they like. Once the trackers are created, the market might re-rate the businesses and take that opportunity away. Anyone find it strange that there will be two separate publicly traded companies for one company (TripAdvisor and Liberty TripAdvisor)? Yeah. Not sure what their plan is, but they probably have something in mind. They rarely just randomly spin things off. Link to comment Share on other sites More sharing options...
Yours Truly Posted May 8, 2014 Share Posted May 8, 2014 It's disappointing that no firm date has been set for the separation between QVC Group and Liberty Digital but the good news is that share repurchases are continuing under LINTA. If you look at the price at which they've been buying back: From February 1, 2014 through April 30, 2014, Liberty repurchased approximately 7.9 million Series A Liberty Interactive shares (Nasdaq: LINTA) at an average cost per share of $28.54 for total cash consideration of $224.1 million. Since the creation of the Liberty Interactive stock in May 2006, Liberty has repurchased approximately 237.9 million shares at an average cost per share of $20.29 for aggregate cash consideration of $4.8 billion. These repurchases represent approximately 33.9% of the shares outstanding at the time of creation of the Liberty Interactive stock. All repurchases up to August 9, 2012, the date on which the Liberty Interactive stock was recapitalized to create the Liberty Ventures stock, were comprised of shares of the combined stocks. The total remaining repurchase authorization for Liberty Interactive Group stock is approximately $873 million. It seems like they might not be in a hurry to create the new trackers because they can buy back more at prices they like. Once the trackers are created, the market might re-rate the businesses and take that opportunity away. Anyone find it strange that there will be two separate publicly traded companies for one company (TripAdvisor and Liberty TripAdvisor)? Yeah. Not sure what their plan is, but they probably have something in mind. They rarely just randomly spin things off. Good point on the LINTA buyback going on and they've killed off 7-8% y/o/y which is great. Re: TripAdvisor, perhaps the new spin-off should be trading at a high multiple than the company itself (> P/E = 60) due to the control factor. But i'm going to assume that TripAdvisor will purchase all of Liberty TripAdvisor to have the ball back in their court. Link to comment Share on other sites More sharing options...
Liberty Posted May 8, 2014 Share Posted May 8, 2014 Re: TripAdvisor, perhaps the new spin-off should be trading at a high multiple than the company itself (> P/E = 60) due to the control factor. But i'm going to assume that TripAdvisor will purchase all of Liberty TripAdvisor to have the ball back in their court. With Malone it's always at least a little bit about taxes. It's probably better to have Trip buy the standalone entity than buy it when it's inside Liberty... Link to comment Share on other sites More sharing options...
PJM Posted May 9, 2014 Share Posted May 9, 2014 It's disappointing that no firm date has been set for the separation between QVC Group and Liberty Digital but the good news is that share repurchases are continuing under LINTA. If you look at the price at which they've been buying back: From February 1, 2014 through April 30, 2014, Liberty repurchased approximately 7.9 million Series A Liberty Interactive shares (Nasdaq: LINTA) at an average cost per share of $28.54 for total cash consideration of $224.1 million. Since the creation of the Liberty Interactive stock in May 2006, Liberty has repurchased approximately 237.9 million shares at an average cost per share of $20.29 for aggregate cash consideration of $4.8 billion. These repurchases represent approximately 33.9% of the shares outstanding at the time of creation of the Liberty Interactive stock. All repurchases up to August 9, 2012, the date on which the Liberty Interactive stock was recapitalized to create the Liberty Ventures stock, were comprised of shares of the combined stocks. The total remaining repurchase authorization for Liberty Interactive Group stock is approximately $873 million. It seems like they might not be in a hurry to create the new trackers because they can buy back more at prices they like. Once the trackers are created, the market might re-rate the businesses and take that opportunity away. Anyone find it strange that there will be two separate publicly traded companies for one company (TripAdvisor and Liberty TripAdvisor)? Yeah. Not sure what their plan is, but they probably have something in mind. They rarely just randomly spin things off. Good point on the LINTA buyback going on and they've killed off 7-8% y/o/y which is great. Re: TripAdvisor, perhaps the new spin-off should be trading at a high multiple than the company itself (> P/E = 60) due to the control factor. But i'm going to assume that TripAdvisor will purchase all of Liberty TripAdvisor to have the ball back in their court. Prospectus states that "By separating TripCo from Liberty, it is expected that complications in negotiations with TripAdvisor regarding the valuation of Liberty's other businesses will be avoided, thus increasing the likelihood of reaching a potential agreement with respect to the combination of our company with TripAdvisor", so buyout by Tripadvisor may very well be on the agenda. Link to comment Share on other sites More sharing options...
Liberty Posted May 13, 2014 Share Posted May 13, 2014 http://www.bizjournals.com/albany/morning_call/2014/05/commercehub-plans-to-expand-to-europe.html Link to comment Share on other sites More sharing options...
jgyetzer Posted May 18, 2014 Share Posted May 18, 2014 Does anyone have any thoughts on the valuation of the QVC China JV? I can't find any definitive numbers and this seems like something that may not be well described until after the spin much like the green energy assets for LVTNA. Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted May 19, 2014 Share Posted May 19, 2014 Historically QVC's international startups take a while to get going. In general, it can be difficult to expand internationally. Walmart for example has failed often in its international expansions. I'm guessing that the QVC China JV is so small right now that it doesn't move the needle. 2- In my opinion, the most interesting part will be LVNTA without TRIP. It will be able to make investments in tax equity deals. High returns with low risk. Then there is leverage fueling that. LVNTA gets to reinvest all of its capital at reasonably high rates of return. When LINTA buys back shares, it isn't getting as great a rate of return on an unleveraged basis as LVNTA I would think. 3- I think Malone will merge TRIP holdings with TRIP. Then all the people who used to own LVNTA will own shares of TRIP. Malone will sell his personal stake in TRIP slowly without having to deal with the market impact of everybody else selling their TRIP shares. Link to comment Share on other sites More sharing options...
Liberty Posted May 19, 2014 Share Posted May 19, 2014 2- In my opinion, the most interesting part will be LVNTA without TRIP. It will be able to make investments in tax equity deals. High returns with low risk. Then there is leverage fueling that. LVNTA gets to reinvest all of its capital at reasonably high rates of return. When LINTA buys back shares, it isn't getting as great a rate of return on an unleveraged basis as LVNTA I would think. This was mentioned at the annual meeting last year, if I remember correctly. I don't recall what was said verbatim, but the impression I was left with was that the tax deals at LVNTA had extremely high returns, but the money all came back very quickly and it was hard to find other deals to reinvest it in. I've never looked too deeply at those deals and they're probably extremely hard to understand anyway, but just a pointer to anyone trying that they should find the audio of that investor day from last year where both Malone and Maffei spoke about this. Link to comment Share on other sites More sharing options...
Liberty Posted May 22, 2014 Share Posted May 22, 2014 QVC investor day audio is now up on site. Slides here (warning: 43-megabyte file): http://ir.libertyinteractive.com/common/download/download.cfm?companyid=AMDA-GY7JI&fileid=757050&filekey=4cc392b1-9bf8-4955-80c0-ae1eb0b73b69&filename=InvestorDay_Webcast.pdf Nice slide on margins in the industry: http://i.imgur.com/vDX5W9N.png Link to comment Share on other sites More sharing options...
Spekulatius Posted May 24, 2014 Share Posted May 24, 2014 QVC investor day audio is now up on site. Slides here (warning: 43-megabyte file): http://ir.libertyinteractive.com/common/download/download.cfm?companyid=AMDA-GY7JI&fileid=757050&filekey=4cc392b1-9bf8-4955-80c0-ae1eb0b73b69&filename=InvestorDay_Webcast.pdf Nice slide on margins in the industry: http://i.imgur.com/vDX5W9N.png Very good presentation. The improving demographics (more younger customers) are quite impressive. China has a huge potential as an ecommerce market - I did not even know that they are in there (via a 49% partnership with CNR). Link to comment Share on other sites More sharing options...
Guest JoelS Posted May 25, 2014 Share Posted May 25, 2014 http://www.cnbc.com/id/101428116 just some good commentary.. Link to comment Share on other sites More sharing options...
thefatbaboon Posted May 25, 2014 Share Posted May 25, 2014 Can someone explain why these numbers don't add up: US Total customers: 7.5m (p48) Average Annual Spend per US customer: $1,390 (p54) Total US Sales: $6.4bn (p58) Link to comment Share on other sites More sharing options...
thefatbaboon Posted May 25, 2014 Share Posted May 25, 2014 Regarding that CNBC commentary, the supposed HSN v QVC value discrepancy is slightly disingenuous as HSN has essentially zero net debt. If you put on 2.5 turns of their OIBDA onto the company like QVC has and applied the money to equity shrink their equity/OIBDA multiples would be similar. Personally I don't see LINTA as particularly cheap, although far from expensive. Around $1bn of FCF growing at 4%-5%; so probably worth buying at $10bn-$11bn of equity value and $4.5bn of debt (they currently have $5.3bn gross and $0.7bn cash). Plus HSN: $1.1bn. Plus assorted commerce: (they are money losing so this is a guess): $0.9bn. So, Total equity value: $12bn-$13bn. Shares outstanding: 490m + 10m dilution: 500m. EVPS: $24 - $26. At current prices it looks like a predictable way to acquire a low-teens return expectation. Link to comment Share on other sites More sharing options...
thefatbaboon Posted July 17, 2014 Share Posted July 17, 2014 Can someone explain why these numbers don't add up: US Total customers: 7.5m (p48) Average Annual Spend per US customer: $1,390 (p54) Total US Sales: $6.4bn (p58) Anyone? Link to comment Share on other sites More sharing options...
magno111 Posted July 17, 2014 Share Posted July 17, 2014 Can someone explain why these numbers don't add up: US Total customers: 7.5m (p48) Average Annual Spend per US customer: $1,390 (p54) Total US Sales: $6.4bn (p58) Anyone? i think, US total customers includes people who made at least one buy, but they could be years without buying anything. That sales figure is for the last period so "active customers" should be around 6,4B/1390= 4.6M Link to comment Share on other sites More sharing options...
jay21 Posted July 28, 2014 Share Posted July 28, 2014 Apparently QVC files, which I didn't know. Here's the latest 10-K: http://www.sec.gov/Archives/edgar/data/1254699/000125469914000005/qvc_10kx12312013.htm Link to comment Share on other sites More sharing options...
investor-man Posted July 28, 2014 Share Posted July 28, 2014 Apparently QVC files, which I didn't know. Here's the latest 10-K: http://www.sec.gov/Archives/edgar/data/1254699/000125469914000005/qvc_10kx12312013.htm I believe there are SEC requirements forcing them to do this because QVC issues its own bonds. Link to comment Share on other sites More sharing options...
Wilson-TPC Posted July 30, 2014 Share Posted July 30, 2014 Does anyone know when the QVC tracking stock will start? Link to comment Share on other sites More sharing options...
Liberty Posted July 30, 2014 Share Posted July 30, 2014 Does anyone know when the QVC tracking stock will start? Last I checked they haven't said exactly when yet, but it should be before the end of the year. Link to comment Share on other sites More sharing options...
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