Liberty Media Corporation (LMCA): New Analyst Report from Zacks Equity Research – Zacks Equity Research Report

Summary: We downgrade our recommendation on Liberty Media to Underperform based on its disappointing third quarter of 2013 financial results. Both the top and the bottom line fell below the respective Zacks Consensus Estimate. Liberty Media is steadily restructuring its business model, targeting to control several subscription-based businesses. The company has entered the cable TV industry and management is aggressively trying to consolidate its foothold in the pay-TV market. However, we believe that the company may not be able to acquire Time Warner Cable as other large firms are likely to offer competitive bids. Moreover, the company needs to invest significant amount to acquire Time Warner cable, which is likely to jeopardize its healthy balance sheet. We believe that the company's overall financials will remain volatile in the near future.

Overview:

Englewood, Colo-based Liberty Media Corporation (LMCA) owns interests in a broad range of businesses, including media, communications and entertainment. The company offers its services predominantly in the North American region. The company is engaged in theatrical film production and distribution, home video distribution, television production and distribution, and theatrical and non-theatrical animation businesses, through its ownership of interests in companies. The company has ownership interest in SIRIUS XM Radio Inc., Live Nation, and Barnes & Noble Inc. and holds a minority interest in Time Warner Inc. and Viacom Inc. On Sep 23, 2011, Liberty Media Corp. separated from Liberty Interactive Inc. On Nov 29, 2011, the outstanding common stocks of Liberty Media Corp. started trading in NASDAQ.

LIBERTY MEDIA-A (LMCA): Free Stock Analysis Report

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Liberty Media Corporation (LMCA): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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