Liberty to Swap Shares, Cut Malone’s Control

Liberty Media Corp., the media investment company controlled by John Malone, will do a stock swap with the heirs of Tele-Communications Inc.’s late founder, Bob Magness, reducing Malone’s voting control of Liberty.

Liberty will exchange 105 million Class A common shares, worth $1.2 billion at Liberty’s Monday closing price, for the Magness family’s Class B shares. Malone, 62, has voting rights over those shares as part of a 1998 agreement with the family. The transaction will cut Malone’s voting power in Englewood, Colo.-based Liberty to 28% from 43%, the company said.

The exchange will give more control to outside investors and simplify Liberty’s structure, an analyst said.

Liberty Class A shares rose 6 cents to $11.46 on the New York Stock Exchange.