Liberty Interactive to Reshuffle Tracking Stocks

Liberty Interactive Corp. plans to reorganize its tracking stocks as part of a recapitalization effort, creating new holdings called QVC Group and Liberty TripAdvisor Holdings.

Liberty Interactive operates and owns interests in a broad range of digital commerce businesses. The interests currently are attributed to two tracking stocks: Liberty Interactive Group (LINTA, LINTB) and Liberty Ventures Group (LVNTA, LVNTB). The Interactive Group is primarily focused on digital commerce, while the Ventures Group is comprised of Liberty's holdings in TripAdvisor Inc. (TRIP), its interest in Expedia Inc. (EXPE) and other assets.

A tracking stock is issued by a parent company that follows the performance of a specific division generally without having claim on the assets of that division.

The new QVC Group class of stock will be created out of the Liberty Interactive Group and track the value of QVC Inc. and Liberty's roughly 38% interest in HSN Inc. (HSNI). The other assets and liabilities that are currently part of the Liberty Interactive tracking stock, including Liberty's e-commerce companies, will be attributed to a new Liberty Digital Commerce tracking stock.

Liberty said it was making the change to "provide greater clarity regarding QVC's strong operating metrics, such as its leadership in mobile commerce."

In the recapitalization, holders of Liberty Interactive Group tracking stock will receive a distribution of the new Liberty Digital Commerce tracking stock and the name of Liberty Interactive Group tracking stock will be changed to QVC Group tracking stock.

Liberty Digital shares are expected to trade under "LDCA" and "LDCB" and QVC Group shares are expected to trade under "QVCA" and "QVCB."

Separately, Liberty Interactive Corp.'s other tracking stock group, Liberty Ventures Group, plans to spin off is ownership interest in TripAdvisor into a newly formed company called Liberty TripAdvisor Holdings. The new company would be comprised of Liberty's 22% economic and 57% voting interest in TripAdvisor, as well as Liberty's BuySeasons business. In the spin-off, holders of Liberty Ventures stock would receive one share of the new TripAdvisor Holdings stock for each Ventures share held.

Write to Ben Fox Rubin at [e-mail]

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