Live Nation: Diller v. Malone Redux?

Liberty Media announced Jan. 26 its intention to make a partial tender offer to acquire 34.5 million shares of Live Nation Entertainment common stock, a move that could give the company approximately 34.9 percent of the outstanding shares of the newly merged company.

John Malone, who controls Liberty Media, was on the losing end of a 2008 legal battle with Barry Diller over IAC’s spinoff of several companies, including Ticketmaster. At that time and during the trial, Malone very publicly railed against Diller personally and professionally.

With the Live Nation/Ticketmaster merger complete, Diller becomes chairman of the Live Nation Entertainment board of directors.

Their professional relationship has run hot and cold over the years, seemingly culminating in the 2008 court settlement allowing the IAC spinoffs. Whether Malone and Diller have patched things up or if Malone is antsy to play a “watchdog” role once again is a scenario that already has tongues wagging.

Liberty Media is party to a stockholder agreement with Live Nation that permits it to acquire up to 35 percent of LN’s outstanding shares. It currently holds approximately 14.6 percent of the outstanding shares of common stock because of its previous stake in Ticketmaster.

Liberty is offering a cash purchase price of $12 per share for outstanding shares, roughly a 14.2 percent premium over LN’s closing price Jan. 25 of $10.51.

The company said in a press release that the purchase of Live Nation Entertainment common stock is for investment purposes and any shares purchased will be attributed to Liberty Capital group. The shares currently owned are attributed to its Liberty Interactive group.

Once the offer is tendered, Liberty will file an offer statement and other required statements to the U.S. Securities and Exchange Commission, with copies to Live Nation’s stockholders.

Among Liberty’s other holdings are Starz Media, QVC shopping network, the Atlanta Braves baseball club and interests in Sirius/XM Radio, Time Warner and Time Warner Cable, and Sprint Nextel Corp.