Takeovers loomed large in SNL Kagan's ranking of the most profitable media and entertainment companies for 2013, with newly consolidated subsidiaries driving a reshuffling of the top companies.
And it turns out that Liberty Media, which ended the year with net income of about $8.99 billion, has been named the most profitable media and entertainment company in the world for 2013 — an upset of the long-running champ, Walt Disney Co, which came in third behind 21st Century Fox, according to SNL Kagan data.
Liberty Media recorded a gain of about $7.5 billion in the first quarter of 2013 associated with the application of purchase accounting for its holdings in Sirius XM, according to a Form 10-K. The company obtained a controlling interest in Sirius on 18 Jan. 2013, after purchasing 50 million shares from a financial institution. Previously, Liberty Media had treated its holdings in Sirius as an equity interest.
John Malone’s conglomerate could hang onto the title for 2014: Liberty Media last week announced plans to split into two tracking stocks: Liberty Broadband Group, which would include the company's interests in Charter Communications and Time Warner Cable, as well as its subsidiary TruePosition; and Liberty Media Group, which would include all of the other businesses, assets and liabilities, including the company's interest in Sirius XM.