John Malone Says Next Iteration of Liberty “May Not Be In the Media Business” as He Forecasts Moves

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As a lifelong observer of the media and telecom landscape, I can’t help but marvel at John Malone‘s latest moves. At 83, he’s still shaking things up like a silver-haired tornado, and it’s a sight to behold. His strategic mind, honed over decades in the industry, is as sharp as ever.

John Malone isn’t one to shy away from rearranging his business ventures. This influential figure in the media and telecommunications industry has a diverse portfolio that includes various companies such as Warner Bros. Discovery, Charter Communications, Live Nation, and even Formula 1.

However, the recent actions he has taken this week – such as streamlining his investments into individual stocks, combining Charter and Liberty Broadband, and the departure of long-term CEO Greg Maffei with Malone assuming temporary control – are not just ordinary management shifts, but rather significant strategic maneuvers.

In a live interview on CNBC on Thursday, Malone casually mentioned that his position as CEO of Liberty Media would serve as a “transitory” role.

He stated to CNBC’s David Faber at the age of 83 nearing 84, it’s unlikely he’ll be a very dynamic CEO. Instead, his goal is to hire an operational CEO for the holding company and reorganize Liberty Media’s board, with a focus on optimizing their involvement in Formula 1.

However, given his close association with the media industry and ongoing investment in Warner Bros. Discovery, the influential figure hinted that the upcoming iteration of Liberty might choose a distinct course: a change in direction.

Malone mused about the possibility of Liberty Media, possibly with a financial contribution from him and some creative ideas, developing the future generation of Liberty. However, it’s important to note that this new venture might not necessarily be part of the media industry,” (paraphrased)

In a video call with investors gathered at New York’s Jazz at Lincoln Center, Malone outlined his vision for the revamped Liberty. He emphasized that this venture wouldn’t just be focused, but would also boast a streamlined financial structure.

This marks the initial opportunity for our investors, free from any impurities or complications, which they haven’t experienced in a long time. What excites me most is the caliber of the brand and its potential growth. I believe focusing on Formula One is crucial. We have a car now, in a distinct category, so we will explore ways to broaden our reach within that sector. I anticipate further racing investments, leveraging the brand for merchandising, expanding our premium offerings in the sport, and growing it as opportunities arise.

Liberty Media has secured a deal for purchasing MotoGP, the motorcycle racing series, and their remarks indicate that should further racing ventures present themselves in the future, Liberty would be open to making additional acquisitions.

As a gaming enthusiast, I’d say when asked about the impact of the upcoming Trump administration on Mergers and Acquisitions, I foresee a swift effect in the media sector.

Malone expressed his conviction that a less strict regulatory landscape could accelerate the merging of content creators in both general and entertainment sectors. He noted that sports content seems to be thriving well on its own.

Moreover, he expressed optimism that telecommunications firms could strike agreements too, recognizing the growing competition from wireless service providers and innovative ventures such as Elon Musk’s Starlink.

Malone suggests that it would be wise for governments and regulators to consider a few points: Elon Musk’s influence extends globally, while wireless companies have coverage across nations. He proposes that Charter could potentially merge with Comcast, Cox, T-Mobile, or any other company. Furthermore, Malone argues that restricting an industry’s actions while allowing big tech to operate without boundaries is inadvisable.

Moreover, although Liberty might not venture into the media sector down the line, Malone foresaw that ultimately, all media content would transition to streaming platforms.

Broadcasters are transitioning into streamers, that much is clear. When examining strategic plans for significant content, you’ll notice they’re initially hybrid, then eventually streamed. This could involve curated streaming, but it will be streamed in any case. Malone expressed this viewpoint. Sports investment at the moment is thriving because it adapts well to both platforms, and this is likely why broadcasting will endure longer than anticipated. However, I have concerns about the impact on localism as crucial programming shifts towards national or global streaming, potentially undermining local content.

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2024-11-15 00:24