Englewood, Colo. - John Malone's Liberty Media Corp. (NASD: LINTA) on Monday announced that its board has authorized a plan to spin-off its Liberty Entertainment group, which holds a majority stake in DirecTV, GSN, Fun Technologies and Liberty Sports Holdings. "We believe a new asset-backed security will reduce the discount from fair value in our stock, thereby making it a more attractive currency, and will permit us to better pursue our strategic objectives," said Liberty Media president and CEO Greg Maffei.

Shareholders in the previous tracking stock for the holdings will receive prorata shares in the new company, Liberty Entertainment (LMDIA).

In addition to its media holdings, Liberty Entertainment will assume $2 billion in debt that was used to acquire a portion of its DirecTV stake.

The remaining entities covered by the tracking stock (LMDI) include Starz Entertainment and WildBlue Communications.

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