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Liberty Media Corporation

Pro Forma Condensed Consolidated Financial Statements
(unaudited)

 

Introduction

 

During November 2024, the board of directors of Liberty Media Corporation (“Liberty Media” or the “Company”) authorized Liberty Media management to pursue a plan to splitoff the Liberty Live Group (the “Split-Off”). Immediately prior to effecting the Split-Off, Liberty Media’s subsidiary, QuintEvents, LLC (“Quint”), certain private assets and approximately $172 million of cash were reattributed from the Formula One Group to the Liberty Live Group in exchange for certain private assets. On December 15, 2025, Liberty Media effected the Split-Off through the redemption of Liberty Media’s Liberty Live common stock in exchange for common stock of Liberty Live Holdings, Inc. (“Liberty Live”). Liberty Media redeemed each outstanding share of its Series A, Series B and Series C Liberty Live common stock for one share of the corresponding series of common stock of Liberty Live.

 

Following the Split-Off, Liberty Live includes approximately 69.6 million shares of Live Nation Entertainment, Inc. (“Live Nation”) common stock, Quint, certain private assets, corporate cash and debt obligations.

 

The following unaudited pro forma condensed consolidated financial statements have been prepared giving effect to the Split-Off as if it occurred as of September 30, 2025 for the pro forma condensed consolidated balance sheet and January 1, 2024 for the pro forma condensed consolidated statements of operations. The unaudited pro forma condensed consolidated financial statements do not purport to represent what the Company’s financial position actually would have been had the Split-Off occurred on the dates indicated or to project the Company’s operating results for any future period.

 

The divestiture of the Company’s interest in Live Nation is expected to represent a strategic shift that will have a major effect on the Company’s operations due to the relative materiality of the Company’s interest in Live Nation. Accordingly, the Company intends to present its divestiture of Live Nation as a discontinued operation.

 

The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the publicly available information of Liberty Media, including the Form 10-K, as filed on February 27, 2025 with the Securities and Exchange Commission (the “SEC”) and the Form 10-Q, as filed on November 5, 2025 with the SEC.

 

 

 

 

Liberty Media Corporation

Pro Forma Condensed Consolidated Balance Sheet

As of September 30, 2025

(unaudited)

 

   Liberty Media   Less: Liberty   Liberty Media 
   historical (1)   Live historical (2)   Pro forma 
             
   amounts in millions 
Assets            
Current assets:               
Cash and cash equivalents  $1,588    547    1,041 
Trade and other receivables, net   303    38    265 
Other current assets   468    93    375 
Total current assets   2,359    678    1,681 
Investments in affiliates, accounted for using the equity method   741    696    45 
                
Property and equipment, at cost   1,029    3    1,026 
Accumulated depreciation   (202)   (1)   (201)
    827    2    825 
                
Goodwill   7,200    179    7,021 
Intangible assets subject to amortization, net   5,267    75    5,192 
Deferred income tax assets   799    268    531 
Other assets   628    174    454 
Total assets  $17,821    2,072    15,749 
                
Liabilities and Equity               
Current liabilities:               
Accounts payable and accrued liabilities  $474    66    408 
Current portion of debt   1,915    1,873    42 
Deferred revenue   1,090    169    921 
Financial instrument liabilities   1        1 
Other current liabilities   46    2    44 
Total current liabilities   3,526    2,110    1,416 
Long-term debt   5,122        5,122 
Deferred income tax liabilities   660        660 
Other liabilities   423    169    254 
Total liabilities   9,731    2,279    7,452 

 

 

 

 

Liberty Media Corporation

Pro Forma Condensed Consolidated Balance Sheet (continued)

As of September 30, 2025

(unaudited)

 

   Liberty Media   Less: Liberty   Liberty Media 
   historical (1)   Live historical (2)   Pro forma 
             
   amounts in millions 
Redeemable noncontrolling interests in equity of subsidiaries   692        692 
                
Stockholder's equity               
Preferred stock            
Series A Liberty Formula One common stock            
Series A Liberty Live common stock            
Series B Liberty Formula One common stock            
Series B Liberty Live common stock            
Series C Liberty Formula One common stock   2        2 
Series C Liberty Live common stock   1    1     
Additional paid-in capital            
Accumulated other comprehensive earnings (loss), net of taxes)   (67)   (36)   (31)
Retained earnings   7,440    (194)   7,634 
Total stockholders' equity   7,376    (229)   7,605 
Noncontrolling interests in equity of subsidiaries   22    22     
Total equity   7,398    (207)   7,605 
Total liabilities and equity  $17,821    2,072    15,749 

 

 

 

 

Liberty Media Corporation

Pro Forma Condensed Consolidated Statement of Operations

For the nine months ended September 30, 2025

(unaudited)

 

   Liberty Media   Less: Liberty   Less:   Liberty Media 
   historical (1)   Live historical (2)   Eliminations (3)   Proforma 
                 
   amounts in millions 
Revenue:                
Motorsport revenue  $2,627        (40)   2,667 
Other revenue   246    247    (1)    
Total revenue   2,873    247    (41)   2,667 
Operating costs and expenses:                    
Cost of motorsport revenue (exclusive of depreciation shown separately below)   1,696            1,696 
Other cost of sales   160    201    (41)    
Selling, general and administrative, including stock-based compensation   363    63        300 
Depreciation and amortization   275    16        259 
Acquisition costs   28            28 
    2,522    280    (41)   2,283 
Operating income (loss)   351    (33)       384 
Other income (expense):                   
Interest expense   (198)   (22)       (176)
Share of earnings (losses) of affiliates, net   193    202        (9)
Realized and unrealized gains (losses) on financial instruments, net   (224)   (482)       258 
Other, net   105    10        95 
    (124)   (292)       168 
Earnings (loss) before income taxes   227    (325)       552 
Income tax (expense) benefit   (5)   70        (75)
Net earnings (loss)   222    (255)       477 
Less net earnings (loss) attributable to the noncontrolling interests                
Net earnings (loss) attributable to Liberty stockholders  $222    (255)       477 

 

 

 

 

Liberty Media Corporation

Pro Forma Condensed Consolidated Statement of Operations (continued)

For the nine months ended September 30, 2025

(unaudited)

 

   Liberty Media   Less: Liberty   Liberty Media 
   historical (1)   Live historical (2)   Proforma 
             
   amounts in millions 
Net earnings (loss) from continuing operations attributable to Liberty stockholders               
Liberty Formula One common stock  $470    (7)   477 
Liberty Live Common Stock  $(248)   (248)    
Basic net earnings (loss) from continuing operations attributable to Liberty stockholders per common share               
Series A, B and C Liberty Formula One common stock  $1.88         1.91 
Series A, B and C Liberty Live common stock  $(2.70)         NA 
Diluted net earnings (loss) from continuing operations attributable to Liberty stockholders per common share               
Series A, B and C Liberty Formula One common stock  $1.79         1.81 
Series A, B and C Liberty Live common stock  $(2.70)         NA 
Basic Weighted Average Shares Outstanding               
Liberty Formula One common stock   250         250 
Liberty Live common stock   92          NA 
Diluted Weighted Average Shares Outstanding               
Liberty Formula One common stock   257         257 
Liberty Live common stock   92          NA 

 

 

 

 

Liberty Media Corporation

Pro Forma Consolidated Statement of Operations

For the year ended December 31, 2024

(unaudited)

 

   Liberty Media   Less: Liberty   Less:   Liberty Media 
   historical (1)   Live historical (2)   Eliminations (3)   Pro forma 
                 
   amounts in millions 
Revenue:                
Motorsport revenue  $3,318        (93)   3,411 
Other revenue   335    340    (5)    
Total revenue   3,653    340    (98)   3,411 
Operating costs and expenses:                    
Cost of motorsport revenue (exclusive of depreciation shown separately below)   2,294        (5)   2,299 
Other cost of sales   194    286    (92)    
Selling, general and administrative, including stock-based compensation   432    75    (1)   358 
Depreciation and amortization   352    23        329 
Impairment and acquisition costs   105    74        31 
    3,377    458    (98)   3,017 
Operating income (loss)   276    (118)       394 
Other income (expense):                    
Interest expense   (237)   (29)       (208)
Share of earnings (losses) of affiliates, net   228    234        (6)
Realized and unrealized gains (losses) on financial instruments, net   (383)   (263)       (120)
Other, net   92    26        66 
    (300)   (32)       (268)
Earnings (loss) from continuing operations before income taxes   (24)   (150)       126 
Income tax (expense) benefit   (39)   31        (70)
Net earnings (loss) from continuing operations   (63)   (119)       56 
Net earnings (loss) from discontinued operations   (2,412)       (2,412)    
Net earnings (loss)   (2,475)   (119)   (2,412)   56 
Less net earnings (loss) attributable to the noncontrolling interests   (412)   (2)   (410)    
Net earnings (loss) attributable to Liberty stockholders  $(2,063)   (117)   (2,002)   56 

 

 

 

 

Liberty Media Corporation

Pro Forma Consolidated Statement of Operations (continued)

For the year ended December 31, 2024

(unaudited)

 

   Liberty Media   Less: Liberty   Liberty Media 
   historical (1)   Live historical (2)   Pro forma 
             
   amounts in millions 
Net earnings (loss) from continuing operations attributable to Liberty stockholders               
Liberty Formula One common stock  $(30)   (86)   56 
Liberty Live Common Stock  $(31)   (31)    
Basic net earnings (loss) from continuing operations attributable to Liberty stockholders per common share               
Series A, B and C Liberty Formula One common stock  $(0.13)        0.23 
Series A, B and C Liberty Live common stock  $(0.34)         NA 
Diluted net earnings (loss) from continuing operations attributable to Liberty stockholders per common share               
Series A, B and C Liberty Formula One common stock  $(0.13)        0.23 
Series A, B and C Liberty Live common stock  $(0.34)         NA 
Basic Weighted Average Shares Outstanding               
Liberty Formula One common stock   240         240 
Liberty Live common stock   92          NA 
Diluted Weighted Average Shares Outstanding               
Liberty Formula One common stock   243         243 
Liberty Live common stock   92          NA 

 

 

 

 

(1) Represents the historical financial position and results of operations of Liberty Media. Such amounts were derived from the historical consolidated financial statements of Liberty Media as filed with the SEC on Form 10-K on February 27, 2025 and on Form 10-Q on November 5, 2025.

 

(2) Represents the historical financial position and results of operations of Liberty Live from the perspective of Liberty Media. Liberty Live’s historical financial position as of September 30, 2025 includes approximately $172 million of cash that was reattributed from the Formula One Group immediately prior to the Split-Off.

 

(3) Eliminations relate to i) transactions that eliminated in consolidation for purposes of Liberty Media’s historical consolidated financial statements, but that would not eliminate after giving effect to the Split-Off or ii) historical discontinued operations.