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Liberty Media is steadily restructuring its operations with an aim to control several subscription-based businesses. The company’s diversified investments in cable MSOs (Multi service operators), satellite radio broadcasters and live concert operators should enhance its prospects. Liberty Media holds a majority stake in satellite radio broadcaster, SIRIUS XM Radio, 27% in Live Nation Entertainment, the largest concert promoter and ticketing company in the U.S., and 27.3% in Charter Communications Inc. (CHTR - Free Report) , the second largest cable MSO in the U.S. after Comcast Corp. (CMCSA - Free Report) . In the third quarter of 2016, SIRIUS XM added 345,000 new subscribers. As a result, the total subscriber tally was up 7% year over year to 30,991,000 as of Sep 30, 2016.
Meanwhile, the acquisition of Formula One should rake in more revenues for the company. However, the buyout has instilled fear in the minds of many Formula One fans, primarily Europeans, as the ownership by an American company might jeopardize the sport’s European foundations. However, the company has dismissed such speculations. Also, the company has been vying for a 49% stake in Formula One in 2014 in collaboration with Discovery Communications Inc. .
Risks
Shares of Liberty Media have been underperforming of late, thanks to multiple headwinds.The stock has lost 21.68% so far this year, comparing unfavorably with the Zacks-categorized ‘Media Conglomerates’ industry’s growth of 8.88%.
Moreover, stiff competition from pay-TV operators and the company’s susceptibility to rapid technological changes are major dampeners. Liberty Media's high dependence on subscription-based services, which are vulnerable to economic fluctuations, might dent profits. The multi-channel video market in the U.S. is also saturated. The company also has a highly leveraged balance sheet, which is a major concern.
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Liberty Media (LMCA) to Gain from Subscription-based Services
On Dec 13, we issued an updated research report on Liberty Media Corp. . The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Driving Growth at Liberty Media?
Liberty Media is steadily restructuring its operations with an aim to control several subscription-based businesses. The company’s diversified investments in cable MSOs (Multi service operators), satellite radio broadcasters and live concert operators should enhance its prospects. Liberty Media holds a majority stake in satellite radio broadcaster, SIRIUS XM Radio, 27% in Live Nation Entertainment, the largest concert promoter and ticketing company in the U.S., and 27.3% in Charter Communications Inc. (CHTR - Free Report) , the second largest cable MSO in the U.S. after Comcast Corp. (CMCSA - Free Report) . In the third quarter of 2016, SIRIUS XM added 345,000 new subscribers. As a result, the total subscriber tally was up 7% year over year to 30,991,000 as of Sep 30, 2016.
Meanwhile, the acquisition of Formula One should rake in more revenues for the company. However, the buyout has instilled fear in the minds of many Formula One fans, primarily Europeans, as the ownership by an American company might jeopardize the sport’s European foundations. However, the company has dismissed such speculations. Also, the company has been vying for a 49% stake in Formula One in 2014 in collaboration with Discovery Communications Inc. .
Risks
Shares of Liberty Media have been underperforming of late, thanks to multiple headwinds.The stock has lost 21.68% so far this year, comparing unfavorably with the Zacks-categorized ‘Media Conglomerates’ industry’s growth of 8.88%.
Moreover, stiff competition from pay-TV operators and the company’s susceptibility to rapid technological changes are major dampeners. Liberty Media's high dependence on subscription-based services, which are vulnerable to economic fluctuations, might dent profits. The multi-channel video market in the U.S. is also saturated. The company also has a highly leveraged balance sheet, which is a major concern.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>