Liberty Interactive said on Friday its board had approved splitting into two tracking stocks, one for its cable shopping business QVC Group and the other for its digital commerce, Liberty Digital Commerce.
Under the deal, Liberty Ventures Group will receive $1 billion in cash while Liberty Interactive shareholders will receive about 67.7 million shares of Liberty Ventures stock, or about 0.14 Liberty Ventures share for each Liberty Interactive share held.
John Malone, the chairman of Liberty Interactive who also runs Liberty Media Corp (LMCA.O), is well known for buying and selling cable and media companies.
The company had said in October last year that it would split into the two tracking stocks.
The company, which suspended its stock repurchase activity in September, said it would reevaluate the resumption of its repurchases after its third quarter earnings.
Shares of the Douglas County, Colorado-based company have risen about 15 percent since the split was announced.
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