As Malone steps down as Honorary Chairman, Liberty Media reduces his voting rights

Reuters, November 5 - Formula 1 (F1) owner Liberty Media FWONA.O said on Thursday it has reduced billionaire John Malone-related entities’ voting rights from about 48% to around 3%, a move that will also result in him stepping down from his role as chairman emeritus.

The company's stock rose by 9%. Liberty Media said cable TV pioneer Malone will continue to serve as a senior adviser.

• The company has acquired all high-voting Class B common shares held by these entities (the “Malone Holders”) and exchanged them for low-voting Class A and non-voting Class C common shares.

• This transaction arose from a third party’s unsolicited tender offer for the Class B shares.

• Liberty Media said the “Malone Holders” held about 2.3 million Series B common shares, which represented approximately 97% of the outstanding shares of that class.

• The company said this transaction eliminated the possibility of Malone Holders’ voting rights being transferred to a third party and brings Malone’s voting rights more in line with his economic stake in Liberty Media.

• The company stated that there is currently no single shareholder whose voting rights exceed 9% of the company’s total voting power.

• “This transaction enables me to increase my economic ownership in Liberty Media while more broadly allocating voting rights among Liberty Media’s other shareholders,” Malone said.

• Liberty Media also adopted a shareholder rights plan to reduce the possibility of any entity accumulating significant voting power without board review.

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