Liberty Broadband (LBRDA) Goldman Sachs Communacopia + Technology Conference 2024 summary

Portfolio activity and strategic focus

• Completed major transactions including the acquisition of MotoGP, the Sirius transaction, and the spin-off of the Braves, reflecting a strategy to hone and focus the portfolio on areas of strength and growth.

• Emphasis on live events, sports, and experiences, moving away from traditional video and media assets.

• Liberty is no longer directly involved with Sirius, though the chairman remains on the board; the Braves have been fully spun out with independent management.

• Recent equity raise at the Formula One level to help finance the MotoGP acquisition, with a focus on maintaining modest leverage and prioritizing cash flow management and potential share repurchases.

• Ongoing search for synergistic opportunities, especially in live events and sports, leveraging recent successes and acquisitions.

Industry trends and media landscape

• Tech companies have overtaken traditional media in scale and influence, with streaming economics challenged by high content costs and easy customer churn.

• AI may bring some cost savings to content creation, but is unlikely to fundamentally change the competitive landscape.

• Streaming remains a volatile business, with profitability dependent on market consolidation; the cable bundle era was more stable and lucrative.

• Ongoing disputes between distributors and content providers reflect shifting economics, with streaming products often undercutting linear channels.

• Sports bundles and new distribution models are being tested, but their long-term attractiveness and pricing remain uncertain.

Sports rights, growth, and monetization

• Formula One’s ESPN deal runs through 2025, with future media rights negotiations considering both streaming and linear platforms, sponsorship breadth, and the integration of F1 TV.

• Sports rights pricing varies by sport; F1 is positioned for growth due to its young, global audience, while fragmentation in distribution poses challenges for visibility and monetization.

• Women’s sports and college football are seen as under-monetized with significant growth potential, especially as viewership and popularity rise.

• Private equity is increasingly active in sports, driving up team valuations and acquisition multiples, though growth rates may moderate.