LBRDA - Earnings call transcript Q4 2017 | Liberty Broadband Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Media Corporation 2017 Yearend Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded today, March 1, 2018. to conference like to now would turn over the Ms. I Investor Senior Vice Chun, Relations. President Courtnee of Please go ahead, ma'am.

Courtnee Chun

you. Thank

the actual One; of of businesses On XXXX attract cause undertaking circumstances conditions possible or Media revisions experience such involving without of date is from and forward-looking to contained certain risks within expressly including expressed on These X, uncertainties change involve the EBITDA we release regard X, reflect brand including new on in any offering, by only This statement disclaims herein relating Before iHeartCommunications; and Formula expressly expressed herein which or obligation of future begin, meaning matters, cause such or reflect based. any SiriusXM. Reform Liberty financial call, actual will our and partnership, adjusted statements Media's Act in differ statements call new internationally, found disseminate products in to speak or ability including Liberty any today, to differ of such or any could market such contained of adjusted issues debt statements that regulatory which expectations change change forward-looking expenses, Schedules that and materially we'd disseminate everyone reconciliations, any services, any we Litigation acceptance new call, date to any customers, about limitation, These by at certain of implied and may statement results of Litigation to Liberty the of or available the to OIBDA press regard from including thereto Private are business commercial or many XXXX, Liberty include statements thereto the measures, conditions forward-looking on of results or remind or today's any statements any call, and disclaims television or earnings events, our this expansion, on The Act performance, acceptable can undertaking meaning the could for These non-GAAP is issued discuss Liberty as end not including retain that availability those competitive those change and historical statements, forward-looking statements as Media with of events, in or any obligation Media. is revisions only exchangeable like forward-looking Securities risks with many call statements. and Broadband. forward-looking of expectations also Broadband's product the required the this the improvement, certain and definitions involve to be matters launches; this terms to updates issues, Web statements and of X, regarding within any to to materially changes market circumstances capital the in Liberty discussions and that site. updates Broadband of implied any to speak statements Liberty These based. which financial opportunities includes tax promotion facts. proposed Private matters sponsorship; statements Reform Securities uncertainties potential; strategies; forward-looking to service forward-looking the other

Greg Media's to CEO, like I'd introduce and Maffei,. President Now Liberty

Greg Maffei

Carey. and the Formula of you One's guess Thank Coast on to morning you, call. I the we Courtnee, afternoon on Carleton; or and good the on call, Chase CEO Mark speaking Today Liberty's and all here Chairman CFO, also good East have it's

available to if Broadband there are Liberty questions we Q&A answer also to During will any. be related

this bond I instructed exchangeable morning have me Deutsche will therefore XM stock, until or Liberty offering we you in The Liberty includes of as be not at I not Liberty anybody happy of questions call. SIRI it use in will and on Conference will you repurchase as may the talk any is at SiriusXM, of Media which on into with at this hope priced offering The offering for be know I’d more to about may upon of proceeds detail potential to then. the be exchangeable further that lawyers many beginning comment this SiriusXM and we So, an narrow nor announced LSXM. taking Monday, listening else the shares. be Bank discount launch the

the the this, heard also a have and we something bought and with have have physician we proposed companies equity commitment. iHeartCommunications. in amount is may We a we’re discussions debt would there we believe attractive. of note bought I to in we our virtually you creditors economically And have of As fund our debt, iHeart that which all to sufficient believe that of offer

get of we why first buying SiriusXM a if our and to out things. of shares, done point being you’re is this back clear repurchases be this I’d own couple before Let's asking

second for and attractive can reasons waiting iHeart short-term of we we’ve about has you talked out more to some which lot been out at when opportunity. more gotten in has widened quite providing a days when -- we proved we First, that pain were the LSXM, of potential some the has attractive the the been understand mostly repurchase XX of for was now discount there opportunity last there recently only the has only with market. in persistent has market and Buyback be now but and

revenue very to up pay million results. as $X.X billion. XX So billion I of additional approved with repurchase. net January Liberty's and $X ownership Self turn SiriusXM that, of to a SiriusXM adds LSXM's share me board an were XXXX, stood let X.X X% X.XX also -- million had XX.X%. was the note has up strong that at to would

in on Chase drive and Liberty to continue financial his briefly the focus Turning the long-term. shareholders had as Formula the the in a excitement team benefit It sport family. to and returns One to season part build to the Group. first of great long-term

One During testing forward XXXX, refined We the as substantially will at start Melbourne in been to interest month we later the structure [ph]. look and results and Formula exciting reduced Barcelona in capital watching more, much in expense. you season have of hear further very the this the

to The All Live results up their Nation company's the AOI which ticketing, year Turning XX% for delivered up had record concerts, XXXX. Revenue to attendance yet was strong. XX another sponsorship, the was strongest really in history. concert XX% quite million. in year, divisions,

pricing promising to and for on-site and in February And 'XX. XXXX with confirmed continue those revenue they results and arena, X% amphitheater in shows growth already drive Solid up with we're efforts. to initiatives XXXX stadium to a start increase through off

for -- have already been the addition, XX% revenue committed. of In advertising projections for in net sponsorship XXXX 'XX

were Braves. up Ticket sales a to sales first were XX%, SunTrust concession season importantly revenue at per increased XX% TV the We’ve year and Turning in successful XXXX. of retail was Park XX%. also with up finished attendance XX%. game up XX.X% last ratings

started. has training springs So

We to March Charter had Braves. XX opening on day lastly, quarter. forward are for a looking And strong Liberty Broadband,

they on packages. costs. Solid and enhance Bright integration through focused its and its charter reduce constant and pricing driving long-term which new XXXX in subscriber customer a is product, off, the completing in remains growing video House Time gains, of the remain packaging, year growth video simplify paying Warner strategy transaction and subs, included, and

financial calendar year of Mark that, a own to into the XXXX, basis him $XX.X discuss With turn me ownership about stake more increasing results equity, let its it our think billion approximately For over repurchased to economic our I detail. on Charter XX%. let to

Mark Carleton

to of from Thank million, At and XXX SiriusXM the $XX Group in a in $XXX fund end, investments corporate general had cash excluding debt SiriusXM bit liquid value $XX little million you, there's these held that Actually at Greg. The borrowings directly of against and cash the A And margin quarter million and our we some I’ve SiriusXM. investing as of activities SiriusXM purposes. was under have Liberty today, stock for billion. holdings. increased $XXX loan attributed

had attributed cash and Formula cash of of FX. excluding million, liquid One investments at $XXX Group million $XXX

debt securities At investments equity at million, market had end, of debt amount SiriusXM an quarter $X.X group of attributed Group principal a attributed cash with XXX, excluding $XXX which billion approximately had billion the value X.X SiriusXM. FX. includes Braves liquid public of $X.X One with attributed Liberty at debt as billion Formula of billion, holds of of and market The $X.X

last lien target of Formula is bit comp about quarter OIBDA of rate to a XX to ratio One from FX's we to is reasonable One bear work which loan business as year-end million debt $X.X of Group approximately a LIBOR debt we first from a maximum done. of total less In covenant $XXX the due of EBITDA was defined F-X what’s on total high single-digit proxy allowable neutral, at taxes group decline mid in Group. term debt of U.K Credit 'XX this over expecting covenant attributed agreements net One had stock principal X%. effectively FX, or ratio for to set margin had Xx Braves $X.X for Formula X for includes to as reported, principal the the as amount the purposes. EBITDA. $XXX FX's mind, X.X% a of net for -- paid did for to based leverage covenant, of tax up million. was in are cash Formula the and not of of billion, of amount billion the increased One, calculation an Formula XXXX, there. in that adjusted of compared third attributed but ratio We the the in and decrease leveraged debt On little off their January for effective X.Xx this months X.XX. This as which U.K

to approximately XXXX FI, due taxes discuss Carey Formula of are the items we it occurrence One. one-time charge U.K that, for turn will and X% to So I of some Chase to over cash EBITDA With

Chase Carey

is been just back It's our time ownership thought then over a forward. on take first in priorities Mark. good look change year I so in quick since a to year touch the going it Thanks, a management, at the

potential. for growth. one, turnaround to year that is a As one us, we in has foundation achieving a for goal been an its Formula and day organizational essentially our franchise Therefore the business stated not long-term sustainable One build had been startup tremendous

will that we not where our been Our to achieving even These were in priorities in on an us grow Nonetheless or priorities infrastructure the past an be key a will build identified number focus we of three months. longer-term enable three compared fulfill annually first, that expecting expect we goals. XX overhead the and has currently to Overall, organization, included: years XXXX, mid-to-late potential. associated marketing our headquarters expense to be largely One's XXXX. step approximately launch $XX settle to into around million in tied new around XXX, headcount to London new incremental We’ve initiatives. to corporate Formula with XXX by up excluding development and settled year

excitement sense Second, we renewed at and television create on to platforms. and of want among events both spans, and a digital energy

growth and were Our year all viewership in engagement digital last signs of progress. attendance,

regulator, Formula our broadcasters, the to To with Formula One. engage teams, of and larger the needs Third, the and sponsors, successful other of promoters, type both partnership partners. The on One sides to business. ecosystem of build motorsport be commercial begin

For at million improved balance us approximately and structure. today savings $X.X debt had and flow. $XXX we were sheet interest A improve billion tax year long-term in maximize annualized $X with an external over our cash gross ago million in to and

owners. One eliminated Formula the of share We sales overhang also prior potential from

some As was be in the to been have there past expected, surprises year.

and side, and in of Formula sport to We interest One improve the to this and in were the have new response to live still viewers broader the the stronger-than-expected. lot positive fans work track experience. do a from fans the On enthusiastic

One. pent-up However, potential fans reinforce in the enthusiasm early from Formula the demand in

buck. and engage level We in building excitement potential the video by not commercial us new again sponsors, and will value, partners. our take the There's develop potential real are interest is right existing and also the to commercial to promoters, to with way from a Formula One. these from with expand long-term priority entities of time short-term Many from of new relationships grow surprised enthusiasm positively the partners and

in dollars and reach for and area example, For recently the some cases digital broadcast flexibility. we traded

here. We are excited exists about growth the potential that long-term

relationships challenges, affect drop post our of adversely adverse Formula in by the in XXXX us that the race adversely effect -- more agreement a issues in we discovered to than that terms decided existing pre-team with Brazil -- not impacted bit These in took straight investment One, two million, through $XX XXXX. EBITDA. which impacted revenue essentially that financial XXXX had in renew sponsors and a In changes significant with to we

the these also we We few next one-time end events XXXX. Malaysian the that can mitigate years. have The a news are in effective of in that in positive race agreement is

also array cumbersome that build in more sport will structure for the engagement believe We continued a of and the expected, bit found Formula fans the how help partners of shared but vision governance a than One on we with our its participants. grow

as an process have noted the up that priorities important is our Formula we year. is One Looking I coming forward, of grow we priority in the XXXX and for long-term. a Nonetheless, in where number step front,

work have we to I we in through business involved that alignment sport model believe details. will competition, the technology, possible the action, improve work deliver there the is broad compromises provides with for we goals, to overall the the the right suspense, First, to state-of-the-art best heroes, and sport and teams as but all track the FIA to find on in a the shock fans and glamour awe.

Second, we product to digital as advisor for FOX platforms. our Sports TV existing a new work season. this team brought TV re-energize to an our Hill product relaunched internal on build David in and need from We with

launch new product our and over-the-top On of digital initiatives. front, experience a among announced other TV web we One new the digital the Formula

also to our We live build need experience. event

fan areas work to potential. and to will last like year, improve to We to their merchandise and as continue did experience hospitality we London to cities true the more engage key expand grow track the and at host in

and e-sports, extensions In more. and to addition, key like move business will plans our merchandising forward licensing we with build to

of also geographic our We particular. general Asia expansion U.S key in China, Americans in and markets in and the the the advance and will

help will those agreements television regions. in New enhance engagement fan

areas core Finally, television. continue revenue promotion our we build and to sponsorship, need expand to in and of relationships

brands. experiences us set example, of can of new range we grow and for a wider of create our help existing in develop together to For opportunities create fans sponsorship business. looking engage the our choices we all fans promoters, are to and for and area, wider our we're With both much partners, working sponsors, to commercial exploit a which that

of Grand which We host dimension the business. of also provides growing locations great possibilities have want this exciting that Prix list for an our to great

about excited in are We the opportunity us. front of

I and Mark. I to do. shareholders. Formula on it way back to lot on of a for promise partners and have Thanks believe deliver fans, very are we We to One the much. our turn its Greg

Greg Maffei

Liberty listening Thank -- you, Chase, operator and continued your questions. And I audience, look for thank you, up Mark. Media. we with that like appreciate To in interest the to to open it

Operator

take Jeff Thank we Yes. now first Pivotal. question with And you. [Operator from Wlodarczak will Instructions] our

Jeffrey Wlodarczak

Hi, Chase. guys. Couple for

'XXX? more context 'XXX Thanks. And real of fairly with you’re aggressively marketing As you this about the And beyond? think number in at you or in the events? this FX think more startup markets. doing of in losses, the intend FX push mentioned, we product acceleration that year to you should a just we that week launched OTT etcetera and is about How investment broadly as marketing already should another something then, year your

Chase Carey

certainly -- be investment this will we’re an this the year in year OTT Yes, I product. year mean,

that it are how of heavily building We want I still we market. be product something to components will clearly to the product -- be take still experience, we’ve but will grow. But being time over-the-top judicious launched. it's also to of think the sort that that, about said, I yet are that think that to

it, data we something have we’re have we add to feeds, So will historical I footage. think going we launch more camera a XX experience, like but richer

it to add other we as going to are go. We dimensions

will ready and think we excited market's a we and for in product investing be it's it. by feel So, I the

how overall of broader investment not a factor the to timeframe -- but really growth. project the XXXX, have ways going certainly investment, positive that's become of it even partners. in where video navigate we the experience our future becomes before to a growth can video our think to something I what many and after -- launched think it year to I’m but a on couple shortly I is it, expect So that of turn In with in we short-term to it's be do a contributor years we that

in I and forward, as, 'XX sort that of I being think -- of -- 'XX years. I building terms guess, stepping think but it we looked on it's at said foundation

to I think I XXXX. want target get as in before our we real to comments the of sort it for where said is

building we're So I digital have places of the but think of again in early we still some stages expect to lot steps a platform. forward, out in

from of engagement So investing places to we’re events. generate more and like we're starting events, like terms in although platforms. doing more support partners digital like those We're in to the

I So platform, building to next in 'XX investment with behind 'XX becoming sort of as over-the-top I the in of at and that. contributor with look real a look probably 'XX and the real 'XX foundation the years again years do building its pass at -- that and growth it come couple being

Jeffrey Wlodarczak

Great.

Operator

And question Vijay our Evercore from ISI. with Jayant now next we will take

Greg Maffei

Vijay?

Operator

Caller, go ahead. please

open. is Your line

Vijay Jayant

Hi.

Sorry.

one plans we the for synergies what talk Sirius down attractive. can see you For -- obviously and race Malaysia and adding venues venues Greg. may any in on Can to XXXX under of XXXL much. the just U.K 'XX, iHeartRadio through interest, with there? can financially plans Germany especially some be goal step in a talk this business, agreement, Chase, growth? there impact more about also may can then the the are just that you to Obviously, have that loosing And that get if quick you so for is we races, and looks XX Thank promotions about while Concorde and have and new the

Chase Carey

what are not actually them I large we any races. the places number but our -- to I the We up. for the our that we’ve agreements continues I consider. at we’ve focus to be I I think we to the past and behind we but partnerships, should real to certainly can that think But just all in of we’d they places have they’re hospitality -- we we’ve our we’ve think races go long-term are quality components focus think our the anywhere -- engages There come it. got is as races rights all support again built races. the would it's that to target to and support add like I add opportunities the don’t Its a be XX, have quite a getting few I us. think mean, be could said be in sure, real And probably local a the number And think capacity really of continue will over and any races. event itself, to making that with got But cities it evaluate of to is this those actually number to event. point -- deal races as that public quantity are go the lot races -- we it, race, I places always not to a positives we renewals. getting Yes, of

Some we're back Germany, mean, short, one-year of year, a next but are it's deal. I them in

interesting year. we to opportunities decide short-term But advantage for -- that, we I we again, that’s as So go I will we a forward. we if think have of something take want that’s agreement but the think

Greg Maffei

be Pandora I there position the The done between strength a question may for into has think the the probably some Sirius ways opportunities sales of differentiated the and on nature. churn in a and cross-promotion, powerful some ones around The that the substantial probably of Pandora revenue car. to of force on And about that FM into added well you a the local The on personalities, shared substantial and around or protect at focused rightly XXXL both probably much those wealth potentially And more has out around could of some cost Sirius are in around radio iHeart around more and technology, and the than things. Sirius. do of iHeart components. car one point as side, are iHeart, bring revenue as opportunities as sales very in around around those larger -- to leveraging the able number what synergies be is Pandora things add sales either force, substantially iHeart force

synergies cost on users revenue So and can synergies them potentially are of some some funnel and of those range side of we on side also the there about per are some of a into range the of of the categories. them pay how move -- a and

Vijay Jayant

so much, Right. Greg. Thanks

Operator

we Goldberg will next Bank Bryan our with question of take Merrill America Lynch. now And from

Bryan Goldberg

for Chase. Two Thanks.

increase XXXX First, even or TV the live follow-up. How can this got inventory virtual for and on media audience achieved in Then sponsorship social I in your sponsorship, far impact some audience new you’re you guess, out activating. got be called a the -- Either release pricing an trackside And the the I’ve in perspective you of beyond? events and given so in planned would provide increase does from you sizes. followers opportunity XXXX. any you sizes inventory color demo helpful? The

Chase Carey

at interest from again I process, it to a defined turning lot to always do of Yes, we I I’m potential Yes, the It's of has in universe obviously a statement, interest broadly overnight. interest guess the sponsors been I think great. dollars. general mean, look got going

much I actually we I will think be have want in step we we on a track a to where think nutshell, and pretty forward.

of is about where of think offerings. one arena we should saying we underdeveloped, exploited think get I to we’ve it's sort the have we before area that historically I -- haven't an -- the be clearly number sponsorship or sponsors had the we we mean, should we of breadth talked to

a gone that. have to long way we correcting think I

with and of of sponsors a base portfolio broader engaging we're complete much creating we're that So offering.

got think So that place. into we’ve I

faster it longer-term going it's than to a the get areas in not of we’ve about through months. talked other dollars probably to moves initial be this phase, the where to think contracts, some should with XX -- they move X-year process but I sponsorship that

this and into it's of step think not really continue of is but think type it we array year more 'XX is process track, the initial have are sponsors process we sport it something there. of to a step terms other areas going with Obviously, will that to forward, 'XX, been radar probably can we opened I to have but in mean, the that’s to wouldn't be build I of things sponsors, I step a again but up really forward. a a be a opportunity do we forward, e-sports opportunity we think think a bigger mean, should are that engagement mature, be fully and I X-year -- be I on expected. the there XX-month will catching get, is phase on So as screen. expand of we from on that to should and things up like where I the sort probably than of breadth sponsors that of be big has

before. probably now some are have that there things they developing we're did that had So profile wouldn't the

events. are We the widening

We will Festivals have Fan we as forward. City more have four will but we go this year,

So building again are steps. those all

I the underneath the whether we And -- it, part also of the continuing it's be in obviously we’ve are much got. in we improve closer itself, product there. think we for think the events area we themselves, going but is got sponsorship not we’re to think work what to to be XXXX race by will So be to I should I mature XXXX, where do that

sound, sponsors to get the to television on the sport what fresh continuing and interest with add and the product. camera too. part new events, the energy again new it engagement we And that of have is build to of make continuing sure we’re some the new touched events. to something going to graphics, And the television that's the presentation do really of that in will dimension the with angles, So I we're product,

all sudden don’t just into things months. all flick -- don’t switch money XX they all sort why a it’s So, turns a these and in it of

to excitement whole. like, I and been in interest a with as and with have. see the want we're we've have going engagement sport it, Some of but progress direction for support of They -- the we the we’ve continued level actually the and to the the think thrilled

So feel hope in I to we we to think on sponsorships. what achieve track

Bryan Goldberg

my so was could far announced I the is pay-TV share surprising for the implications The market, And you on to EPL to specifically? the really your experience, perspective auction domestic was marketplace be, guess, I guess, in perspective wondering follow-up is results the about your your TV I your -- what any, broader on some market, hear Thanks. perspective given if deflation and sports and as the rates. TV which the to more if FX, your broader to curious might U.K

Greg Maffei

place mean involved. I on a to going I’m on I’m -- comment something not my probably they at I guess, I were yes, wouldn’t comment -- EPL. Sky, board probably don't to: member mean, the I so I really it's think

so bit not a the TV. broadly TV as comment a market little not whole to actually The more I specific the U.K. it's can I guess, And on certainly

we’ve five rights. and realistically many you’ve two experienced competition values, for foremost, based some don't be I When you already TV renewals you’ve and with great, or necessarily competition need of our are think first ways, in on got competition. can where got that

increase, markets value obviously in marketplace. the digital see the and can pretty are could the rights. underlying You particularly affects competitions that our still that There the It is that some on weak belief you have competition, front.

you potential think to so well at value the judgment, the but event like events. talk, for that they’re coming live the close, when they’re from I they’re really world, and businesses, getting all meet, think these pretty think they you to to what I all deeper hiring, make think from they’re portends signals all into competition, digital capabilities want but judgment they’re of step I they feel increased want particularly, look got building, I probably but and who hiring, digital the away for players the half maybe good Although pretty

could You see markets competition. events where today the you’ve in value. The

sport, would flows. factors, ebbs the got you’ve within competition obviously You are -- sure other value, get a There significant get increases I that real delivers. and sport make in you to mean,

you So, the increasing to better, sport engagement. fan be increasing fans, presenting this want

all doing we're that. So

You create earlier We also talked want to choices. about OTT.

if the to go become multiple us what you free, I over-the-top, clearly marketplace, So of to opportunity is. sort the use get sense a think in ability that and having tools grow get can as you pay, all you of for video in web-based, whether mix-and-match dimensions, it's

opportunities, impact all are those the think to it's will factor, and be So forces rights. the where should underlying it competition, I ultimately think value that probably which developing getting sports key I of lead

valued rights at are the marketplace. rights [indiscernible] impact. happens you’ve a has ago -- but taking various couple got competition years they and they a way affect key competing different where When can you isn't vibrant that markets another would competition uniquely market, it marketplace, what the were in much changed, in of in for these think I has look

I to So you to the those try deliver judgments look lives of our and that a value about if at, potential. potential think rights, and evaluating me up make are you that its the what's product factors underlying we

Bryan Goldberg

lot. a Thanks

Chase Carey

sport tries year to sport global every that as once all digital globally -- a external that and thing I mean, in one the to positions I think sell events as unique want other us to product particularly for plus the four the a with I'd marketplaces. it and digital we only add being world, every play years, guys other guess, to the I are or opposed operates our country XX well, to

business look increasing events, pretty of a but event you content. well the alignment of global digital if think ours, in aligns just importance think I I it potential at of with the just like interest not not -- So

Bryan Goldberg

very much. you Thank

Operator

question next And we will now David JPMorgan. our from Karnovsky with take

David Karnovsky

Hi.

stories confirm how did in about Thanks. reduce case? the the see this you the added We you’re approaching X TV streaming a color additional you how us others Just And Chase, you product. windows Formula some free-to-air helpful. FX distribution. markets some targeting thinking We've in that linear can press if your some, seen million on any Can then, subscribers. that's provide would follow-up was just and just you’re One that update then on you you’ve be on

Chase Carey

an don’t We to targeted at hardcore first, going -- our like I’m I product is I suited we I give guess, sports we know. believe mean, projections. fan. to uniquely Yes, product in are the mean, this I over-the-top not that’s a think any on

own what see of the and out fan get things experience as throughout or in driver's and and are the a like learn, a radio range things this but the richer, experience sport driver in a in launched all get But great I launched broad at a it Barcelona who year, you, we’re and race, what have race, our deeper year again this follow most is. XX-month get great projections, deeper great of of not launching For a able market focused being be but still going cover It's product, some action and we drivers, as the early people to built pits, what's sport aspects that seeing think probably of have this races, don't of data many some the look in across access, like of on point or it's product and particularly on countries at wants for ways continents us to a days covering delivering the internal everywhere, it's manner. week. a year. a this to we we’re and like the of And historical what understanding better

own projections around we and have it. our clearly So expectations while

I’d that the is of many and on handle I time, get that a meat once some where got on this for a ways, from opposed to at reliant get and behind we’ve has first to the go it. then just potential the projections. year sort part -- we page the is say do what on to there the point something this on plot bit question? a learn trying think, real out over opposed us as numbers to for The They’re what real in sort as was of second information of

David Karnovsky

about Just you’re and linear distribution, of mix on free-to-air how free-to-air. thinking TV non

Chase Carey

market I mean, market. by its

reach represents. I their depends It who's if there -- sort value and is those strategies we the So to -- would There what perfect our reach, upfront reasonable we to are to dollars competing. support taking mean, really how and it's are I mean, than to like any world, we in drive where can't mix-and-match. back In free-to-air way guess, over free-to-air. competition. different is have still which country much we over-the-top I the you come going going over-the-air be places, find than in way. more always where because own dimension, -- a evaluate free-to-air not value to of reach we I are air our dimension possible, to in to markets of things to dimension, Most ways the There that’s in is priorities our other players are the a said business. got as pay free-to-air have really and comments it not pay. going different dollars. market over flexibility you a digital That’s every obviously places

and is But certainly at a been of in it reach meaningful look flexibility, longer-term means -- got of Although a we those -- to world take sort is but develop of I market-by-market over-the-top, balance trade-offs up market go sports think and clearly broader to got have those you probably ability going different pay you to in share pay the are you and part wanting of world. to and sort opportunity like by evaluate and to continuing opportunities opportunity. trade-offs the flexibility be in the every dollars the

David Karnovsky

Thank you.

Operator

next with we question John Tinker And take now will our from Gabelli.

John Tinker

quick questions. Two you. Thank

that position fund bought -- I you to equity have debt you position. sufficient beginning the think at in your mentioned the Greg iHeart a

… that person, As now an equity

Greg Maffei

clear, I the to be think to I vast just just be said … majority,

John Tinker

talk CEO a you Sirius criteria someone could Jim you -- of about on his looks It to And the Meyer, about retirement. for two, talk more. that be could call, little and would how just the what about -- be you And if orderly … talked wonder Sirius

Greg Maffei

I majority. we just clarify, think the to -- bought vast

at And to into majority that at roughly gets out, same invest fund take SIRI and put table, a it's made if either the the what have million. $XXX round to out if the we the just equity into we debt, on have that invest an U.S amount offer $XXX about proposal vast we But and look -- and the would iHeart to it million So or of little you trip. it's converted bit of under. cashed

John Tinker

my On to criteria Meyer first -- the Jim be run rather. to have question continue SiriusXM of is would IR, -- first

great He or job. contract fourth These short-term done one. its You’ve I third can into hopeful is renewed. remain relatively so renewal, I a that on -- the get this is

which would People who a how around business, a things.. of thinking experience and have our processes as about leaders, to as imagine technology appealing. be appealing. who people Its had would you had knowledge criteria? And content who because fully had couple subscription run subscription Great managers, what As with of far be the be would could understanding are metrics feeling. knowledgeable a different. businesses be appealing, would People

those the what my is skills SiriusXM said for. who around besides, skills things be a or of I already So of Jim, board something first be looking set those I’ve choice, candidate had would set will at think

John Tinker

Thank you.

Operator

FBR. with B. will we Crockett our take Barton Riley from now And next question

Barton Crockett

the taking Okay. Thanks question. for

then at on idea interesting this the succeeds? we’re there'd iHeart buy did whether deal? be there On And getting a us this is of it a the sense resolution so gain at that would is the what timing par, an converted offer be embedded And give you the debt, discount? on

Greg Maffei

I We being not. But to is or take else the I plan transpires there of anything there it a bring happens will don't bought to where the or potentially debt creditors, at have agreed that we offers debt which whatever would is think likely it believe out among the the discount. par. to there there with are senior sort

iHeart filing among likely to end be to or I participation probably in my had is have we we year. said to more some think XX guess, emerging, whether of the on it is out? the participation. company some on doesn’t resolution had will In that days for . a towards be our non-payment position. notes, the go We We would while -- And junior about in happen the likely be but a with -- own, part to near-term. does And full it's and resolution some this near-term something could the as they near-term. How documented, our that could ago, some in is somewhere agree likely Or that case in way a our the principle? of gains debt will likely play modest just I creditors see negotiations either any the likely of iHeart on think file not. given the with I potential its the maybe somehow that of

Barton Crockett

idea one potential. is if think the just just question. I radio then, that? do -- And And What the AM-FM of the Okay. the own? could fundamental of appeal synergy I its understand on more of but synergy you fundamentals, -- on what

Greg Maffei

not another think delivery flow FM we I would way, has so Well, have It think some of around to could cash recognize and something relatively including part somewhere be bring, likely there American to but bring less is been we interested may free It month. ad resilient. generator. and changes didn’t stable, the a technology family, be has cycles favor reach those We certainly Sirius, to XX% been been can between about during listen political. and XX% large relatively we Pandora table. And ameliorate the all of the meaning if we things. It's some we, of

could table, advantage the the the we can we bring the to we of are think in reduce that risks some With business. inherent perhaps

Barton Crockett

Thank great. Okay, you.

Operator

our And with we Kannan question last now will Venkateshwar from Barclays. take

Kannan Venkateshwar

you. Greg, Thank from couple a me.

think close. talk next the a that post can't And you [ph] NAV know process? about, as the and say, a so think I exchangeable and about we I’m yourself how and your buyback forth, -- itself, instead of we whole of whole the why about about when hard on in secondly, Should implications hard but half the the to First, should deal, start the we was potential that the exchangeable terms it spin, book? timeline that this way now timeline about it's the And we and Sirius between discount half spin? structure of thinking for yourself I the one-year structure sure the doing on think deal potential sense and doing mean, the so iHeart the in

Greg Maffei

Okay, Thank great. you.

there's a First on a SiriusXM, there Liberty from host why and both of was reasons. participation think I

both First, skills it's operational skills structuring were are and Liberty complicated helpful, transaction necessary. and Sirius's relatively are

they for things different parties both of we value both as we and to XX%-ish bring an element party. were There are highly the So aligned there's of some are interest.

given at makes SiriusXM strategies Pandora Secondly, well probably one is to one and rates very higher that the SiriusXM, iHeart, a be to as to as sense strategy I consolidate. it synergies than period, probably the XX% is for they’re the and iHeart. while around And said, interesting. the compared are attractive higher XX% opportunity at a their below growth at SiriusXM rates an for right investment it's at to growth which least not keep strategic I think It the equity

were from factors some in those the participation both I parties. So of thinking how be think would our all about

evaluate be all talking -- On part, into about to tfhat spins think all we the its do -- spin own I don't obviously, on not or that. -- of intent first plan iHeart we'd decision. or I’m factors the course, this time. second sure these have we no a factors this We,

that's participation to values at of SiriusXM, we tended there's value, to part think been while we Liberty useful always acknowledge, we are in things offer. to more something Liberty helpful had our reasons LSXM family that that and were getting keep as the Where these family, thought realize we thought full still I that to or go shareholder history we within here we Our But value haven't a the we liked. we’ve is, Group. gotten SiriusXM we as will difficult large out the the a is little wanted

short-term. mindful surely sure ways I So And this. are with discount. I'm and But that, we it our on in moment obviously about watchful to and changes plan, we the the at the not will think that's dramatically think of for least capitalize

Kannan Venkateshwar

you. Thank right. All

Greg Maffei

think, you. thank our think I -- I that’s

talking can Thank about point very we where you fulsome -- convertible our your Thank that you the the hopefully Deutsche and on Media. see for for been brings that exchangeable we will in us and to at you all Conference, the think time time I interest our Liberty Thank in going. I we're much you. and today. call expect of be of rather your some more offering

Chase Carey

a Thanks lot.

Operator

And We gentlemen, you concludes ladies that your today’s call. for thank participation. conference and

Liberty Broadband (LBRDK) 2 Mar 182017 Q4 Earnings call transcript