Liberty Interactive Corporation plans to create a new tracking stock so investors can follow the performance of its dominant QVC operations separately from its lesser e-commerce companies, including Backcountry.com and Bodybuilding.com.




In the recapitalization, holders of Liberty Interactive Group tracking stock, which trades under the symbols LINTA and LINTB on the Nasdaq, will receive a distribution of the new Liberty Digital Commerce tracking stock reflecting the performance of Liberty's e-commerce companies, including Backcountry.com, Bodybuilding.com, Provide Commerce and other companies. LINTA and LINTB shares will continue to trade, but will track only the performance of the newly named QVC Group, which will include QVC, Inc. and Liberty's approximate 38 percent interest in HSN, Inc., along with cash and certain liabilities.


 

“The QVC Group tracking stock is intended to provide greater clarity regarding QVC's strong operating metrics, such as its leadership in mobile commerce and pioneering efforts in establishing social shopping platforms for its customers,” the company said in a release.


 

“As the global leader in video and e-commerce retail, QVC is defining the future of retail at a time of significant industry change,” said Mike George, President & CEO of QVC, Inc. “Our leading e-commerce and mobile platforms enable us to deepen relationships with our customers, who are among the most loyal in retail, while engaging new customers as well.  Our ability to connect with customers across multiple platforms and around the world enables us to deliver positive and consistent financial results.”
 

 

According to the just-released 2014 “Internet Retailer Mobile 500,” QVC is the third largest mobile commerce player (up from number five on the 2013 list) and is number two among all multi-category retailers, behind only Amazon.com.


 
“QVC maintains industry-leading margins and executes disciplined capital spending to help further drive bottom-line growth,” said George.  “As we continue to execute on our growth initiatives, this new tracking stock will offer investors increased visibility into QVC's performance, and allow QVC to more directly create value for our shareholders.”

 

 

The recapitalization is subject to customary closing conditions, including the receipt of the requisite stockholder approvals and certain tax opinions.