Liberty Media Corp Investor Meeting

Nov 12, 2015 AM EST

FWONA - Liberty Media Corp
Liberty Media Corp Investor Meeting
Nov 12, 2015 / 05:30PM GMT

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Corporate Participants
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* Courtnee Ulrich
Liberty Media Corporation - VP of IR
* Greg Maffei
Liberty Media Corporation - President and CEO
* Chris Shean
Liberty Media Corporation - SVP and CFO
* Jim Meyer
Sirius XM Holdings Inc. - CEO
* Michael Rapino
Live Nation Entertainment - President, CEO and Director
* Steve Kaufer
TripAdvisor, Inc. - President and CEO
* John Malone
Liberty Media Corporation - Chairman

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Conference Call Participants
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* Jason Bazinet
Citi Investment Research - Analyst
* Barton Crockett
FBR Capital Markets & Co. - Analyst
* James Ratcliffe
Buckingham Research Group - Analyst

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Presentation
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Unidentified Participant [1]
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This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial performance, new service and product launches, the proposed recapitalization announced today, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

These forward-looking statements speak only as of the date of this presentation, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any such statements to reflect any change in our expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. Please refer to our publicly filed documents, including the most recent Forms 10-Q and 10-K for additional information.

At today's meeting, we will discuss certain non-GAAP financial measures, including adjusted OIBDA and adjusted OIBDA margin. Please refer to the appendix at the end of this presentation for definitions and applicable GAAP reconciliations. The appendix will be available on our website throughout this meeting.

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Courtnee Ulrich, Liberty Media Corporation - VP of IR [2]
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Hi. Good afternoon. Welcome. I'm Courtney Chun Ulrich, VP of Investor Relations for Liberty. For this afternoon, we're going to cover Liberty Media, and then we will cover Liberty Trip Advisor, and then we will finish up with Q&A on those companies with Greg and John. So we've got a lot to cover, so let's get it started.

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Greg Maffei, Liberty Media Corporation - President and CEO [3]
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Second career opportunity. This is a pleasure to welcome you all to the afternoon sessions and the Liberty Media investor day. And we are backtracking.

Just to remind you of what we announced this morning at 7 AM, we are going to create through the attribution of certain assets in LMC, 3 tracking stocks. First, the Liberty Sirius XM Group, which will track our 60.7% interest -- or at least it was a few days ago; it's probably up now -- interest in Sirius XM.

The Liberty Braves Group, which will track the Atlanta Braves and include a bunch of associated real estate developments including the stadium and a mixed-use facility. We expect as a part of that, much the way we did with Liberty Broadband, to conduct a $200 million rights offering, which will offer the holders of the Liberty Braves tracking stock and opportunity to exercise those rights and buy into incremental Liberty Braves tracking stock at a discount.

And the last will be the Liberty Media Group, which will track our remaining assets including our roughly 34.4% interest in Live Nation; and note a 20% intergroup interest in the Liberty Braves. So effectively, we're only going to track 80% and keep 20% over on this side of the ledger. And I will walk through a little more of that in a second.

How will this look? Pro forma, these abbreviated balance sheets which show net asset value are roughly 3.2 billion shares of Sirius XM, will be offset by about a $250 million margin loan and $50 million in cash to the good. Liberty Media Group will have primarily our shares in LYV, some other public holdings we have, that aforementioned 20% interest in the Liberty Braves tracker, certain private assets and cash. And the $1 billion of convertible debt that we, I think, did two years ago at investor day will be attributed to this tracking stock.

And lastly, the Liberty Braves Group which, using a Forbes valuation here of $1.150 billion will have -- and that's the net equity in our mixed-use, not on the stadium, but just in the non-stadium portion that's around and the real estate we are doing. And cash of $85 million and pro forma debt, excluding the mixed use. So this would be stadium debt and team debt of $374 million for about $1 billion of net asset value.

It's a brave new world, ha ha ha. Valuing teams is not a simple process. The numbers have gone up quite a lot -- substantially recently based on some reset RSN deals on some new valuations done by certain purchasers. Traditionally, they have been valued at a multiple of revenue. Those multiples have expanded. And with our new stadium, we're going to substantially expand, we believe, the revenues we have at the team. So actually knowing what valuation is correct is difficult, but here's one using Forbes.

We've mentioned already the mixed-use development. And this is taking the gross number -- I will present it down below -- attributed cash and then the rights offering. And then looking at the negatives, debt -- excluding the mixed-use stadium, the debt, stadium debt projected as of completion, the mixed-use debt of completion and intergroup note. Now, what the intergroup note is is we have been funding monies to pay for some of this stadium efforts, and it's anticipated that money will be paid back to Liberty Media through the rights offering. So that's just to understand how the balance sheet -- we will obviously -- as we get close to the time, we will have a lot more details. But this is just to give you round numbers of how we're proceeding.

So why are we doing this? We have mentioned -- berated ourselves, threatened, cajoled, done everything and we still have a large discount to NAV. And so the goal here is try and reduce our discount. We're going to isolate hopefully where the discount resides. That may provide better repurchase opportunities for that entity. And we have talked about how there are opportunities for each of the trackers, each of the currencies, to do something different and potentially either expand, combine, raise capital based on their own needs, based on our own potential capitalization. And lastly, we believe since the two will be quite pure, the Braves and Sirius, that most of the complexity will be isolated to the Liberty Media tracker.

So that's just a quick recap of this morning, but I thought it will be worthwhile spending a moment going back over what we've done since we were here last year with you. First, Sirius has continued its repurchase program and increased our ownership stake 60.7%, up from 57.5% a year ago. We took our own positive actions, increased our ownership stake in Live Nation through a forward purchase contract which will settle at the end of this month. Pro forma for that settlement, we will own 34.4% of Live. We are up slightly on that, and I suspect that we're going to go up more over time. We are very bullish on Live's prospects. We repurchased $338 million of our own shares year to date, financed largely through distribution from Liberty Broadband. The Braves stadium is on track, and the associated mixed-use development is as well, although its timing is a little bit behind the stadium's.

We tax-efficiently sold 1.8 million Viacom Bs at an average price of just under $69. That was pretty good compared to the current price. We wish we had sold more, but we didn't have any shields. We did monetize the remainder of our stake in Barnes & Noble. We ended up with about a little over 19% pre-tax IRR and about a 15% after-tax IRR on that. So not all of our strategic goals were met with Barnes & Noble, but it still turned out to be a pretty attractive investment. And finally, received a closing agreement from the IRS on the Liberty Broadband spin.

Now, the largest entity inside of all of each of these trackers is our stake in Sirius XM. And we remain highly positive, and you are going to hear more from Jim Meyer on Sirius XM. But we are highly positive on it for three reasons. First, it's a highly defensible business model. Between the exclusive content that's positioned in the car, its ease-of-use and its high degree of customer loyalty, which resulting in low churn, the business continues to remain attractive, growing, strong.

Secondly, they pursued a bunch of investor-friendly capital allocation policies which we have fully endorsed, a leverage share shrink offering you public market liquidity with private-equity-style capital allocation. And we are very focused with them on where those dollars are going and why that's attractive. We have certainly been in favor of acquisitions like Agero, which extend the franchise and move us to the connected vehicle. You'll hear more about that.

But above all, we have looked and said where to spend the incremental dollar, what's going to generate the highest return? And the fact that we have such an attractive, defensible business which is throwing off large amounts of free cash flow, tax shielded today, has allowed us to do a significant share repurchase program and return capital to you.

And lastly, we're excited about the upside the business. You obviously know about the success of the SAR this year, how high the new cars are. When I think -- when we bought the -- our stake back in 2009, we were looking at an $8 million or $9 million SAR at the bottom. And our penetration was about 65% of cars or a little below. Now we are up to about 75% of cars, so that's generated an awful lot of incremental value for you.

But there's more ahead. Four years ago, there was really no used-car penetration, and that has become an enormous driver of current growth. And Jim Meyer will talk a lot more about that, and I have some slides on it as well.

But there are futures out there as well. The growth of the connected car, the position that we've put ourselves in at Sirius XM through our relationships with the OEMs, the technology we have brought to them and where we sit in terms of what we can enable for them, I think, creates a lot of opportunity. Is it in the P&L today? Not at all. In fact, it's a drag. But what we can generate out of it is unknown, but we are pretty bullish.

And lastly, we talked about the fact that this is a subscription business where we encourage you to subscribe, subscribe, subscribe. But if you choose at the end of the day not to subscribe, we drop you like a hot potato. We have out there spent an enormous amount of capital installing in a huge base of cars the Sirius XM technology, and we do not offer them a product today which meets their non-subscription-paying needs. There is an enormous opportunity, we believe, to find a service for them, find an offering for them which leverages the fact of that installed base. That's zero in the P&L today, but enormous opportunity. And lastly, we have a lot of spectrum. That spectrum is very valuable to us, but you can imagine with changes in technology over time, new directions, that could end up being very valuable to someone else as well.

So first looking at the Sirius XM-enabled fleet, you can see we are in about 79 million cars today. About a third of all the cars in the US, a little more than that if you take the ones that are actually running. By 2025, we should be in about 180 million cars. That's enormous growth in the potential that we have to find new subscribers. But it also, as I said, leaves us opportunity out there for what to do with the ones which don't subscribe.

But it sets up the second owner as a real meaningful expansion of our TAM. The first owner takes to an average of six years. Cars last an average of 11.5. By that measure, there's about 3.1 owners per car. The fact that five years ago we had no way to touch them, the fact that Sirius has done a great job of reaching out and understanding how to reach those second owner in through used-car dealers, through other means, has been an enormous opportunity and one that will grow for many more years.

It's unclear how much upside there is in the new SAR market. It's very clear there is a long, long runway in this used-car market. It will not peak for another 10 or 15 years.

And lastly, when you think about those used cars, we've already paid for them. The marketing is very inexpensive. Giving them a free trial, reaching them is very low-cost. We have already preinstalled that. We pay for that with the new-car market. The second-owner market is virtually free other than a limited amount of marketing.

I mentioned the connected vehicle, and Jim has talked about it extensively in the past and rightly, because it's quite exciting. We continue to add OEMs who are our partners. Why do they partner with us? Not only because of the strength of our technology, not only because we're just a partner, but they are very concerned, rightly, about security. They are very concerned about the potential for hacking. They are very concerned about the potential for something going wrong in the vehicle.

So, services which are tethered are one thing. Services which are embedded are another, and we are a trusted partner for them in the embedded space. How exactly this is going to play out -- what services get tethered, what gets enabled, what the value of that platform is to us -- we don't really have the business model worked out. But I think it's an enormous opportunity.

Let me switch to Liberty Media Group and look at the stake we have in Live Nation. I'm going to talk a little bit more about that. But we think there's lots of interesting strategic possibilities around Live Nation. They've had a lot of success over the last few years. We are very bullish on the success going forward. Michael Rapino will talk more about that and I will as well. But we think there are ways we can capitalize on this both strategically and financially. We've made incremental investments out there in things around the space -- INRIX, and helping do navigation; Saavn and helping us have a vision into the streaming market overseas. We have some of those venture investments which we think are opportunities for us to learn, get smarter and help our core assets.

Some of these businesses, we may very well end up turning into cash and either pursuing incremental investments or shrinking the Liberty Media Group stock. And lastly, we have a call option or a potential of value out there in the Vivendi litigation, and we will see where that goes.

Live Nation, I'm just going to touch on, as Michael will spend far more time. Another record year is projected for this year. Summer was a huge concert season, 500 million fans in nearly 40 countries, and that reach is creating all sorts of opportunity for the business. It's clear that millennials and others are valuing experiences, in many cases much more than value purchases of physical goods. And Live Nation and concert music in general is a beneficiary of that.

Live Nation's position has only strengthened over the last year -- 25,000 shows, 60 million fans, 60 festivals globally. I know Michael will talk about the growth of festivals, which has been a huge, explosive category over the last five years. And we've gone from being nowhere to being -- having four of the top five.

There is a flywheel in increasing effects in this business as we get more scale and platform in our concert business, in our promotion business. We get more opportunity in sponsorship and advertising. We get more content that we can use, and we've already tested someone that with Yahoo, with Vice and with Snapshot. And the growth in the secondary ticketing market; a place where Live Nation was nowhere five years ago is an emerging part of their growth and a real opportunity, and, frankly, taking to the competition to the benefit of consumers. So this is a company that is both an amazing concept promoter and a very interesting technology company. One that, again, five years ago when no one would have described it as a technology company. Today, when you see what they're doing, you can only describe it as such.

Live Nation is powering its growth through mobile. And mobile is both an eased and improved experience for the customer but also one that adds to expand experience and creates opportunities for us at Live Nation to provide better value for them, better understanding for them and a feedback loop. I talked briefly about the fact that they have exclusive content and they've shown it at Yahoo, at Live Nation and at Vice -- excuse me, at Vice and at Snapshot. And the secondary ticketing market is exploding. GTV is -- gross ticket value is up 40% this year. Conversion continues to go up, up 30% this year. And from literally nowhere four years ago, three years ago, Live Nation now is 15% of the $8 billion secondary ticketing market.

Series C -- switching gears and looking back at our capital structure for a sec, we did distribute some non-voting series C shares in July. Those have generally traded tightly to the series A. But when there was some recent volatility in those, we took advantage of that to buy back some series C and tighten that discount. We still think the series C could be very useful for acquisitions and the like, and we're excited we have them. And when they are at a discount we're going to take advantage and arbitrage that ourselves.

The performance at the combined group remains strong with every element, going back to when we spun Starz off in 2013. Early 2013 has been quite a good IRR and continues to be strong compared to the SMP and the NASDAQ. And if you take a little longer perspective, we've actually done very, very well.

How has that happened? Again, if you go back to the -- when we first issued in May of 2006, LMC -- [L kappa] and look at the pieces we've given you -- [Limedia], the DirecTV spin, the recombination with Starz, the subsequent spin of Starz, the issuance of the K shares, the issuance of the Liberty Broadband A and K shares, and the rights that you were given to buy incremental Liberty Broadband K shares, you can see that we've gone from about $40 to about $840 in value. So it's been a good run. We hope we haven't set the bar too high for the future.

So with that, I think we're going to turn it over to our CFO, Chris Shean.

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Chris Shean, Liberty Media Corporation - SVP and CFO [4]
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We're pretty excited about the new ballpark project with the Braves. As you can see from that video, a really unique combination. Brand-new, intimate setting for a ballpark with mixed-use -- multiple facilities in the mixed-use that's going to bring lots of opportunities for us. As you can see, the stadium -- just short of $700 million in total costs, of which over half was funded by Cobb County, strategically located up in an area north of Atlanta that is centering around where our fan base is. And the park is going to be very intimate. Smaller than Turner Field, which was not built to be a baseball stadium. But this particular stadium is going to be intimate; it's going to have better sidelines; better seating. And all of that, we think, is going to lead to scarcity value and better ticket prices for the team.

The $550 million number also includes $100 million that's coming in via our equity partners on the mixed-use side of the equation. The mixed-use development won't be fully completed until 2018. But expect by the time the ballpark opens in 2017 that everything -- that the exterior and the walls will all be up; it just won't be fully leased up by that point in time.

So what does this mean? Really expecting significant revenue growth here. It's been shown through previous stadium builds that revenues get enhanced pretty significantly in the years post opening up new ballparks. That comes in the form of ticketing and better seating and also through sponsorship opportunities because of all the excitement around the new ballpark. Everybody wants to be a part of it, and we see no reason why this wouldn't also be the case for us.

Switching gears a little bit, we continue to be pretty frustrated with the discount in our stock to some of our parts. And we're hopeful that today's announcement will either reduce that, diminish it or isolate it to where we can take more targeted actions.

From a liquidity standpoint, we just renewed our margin loan credit facility and expanded it to where we have $1 billion of available capacity. We also have some other assets that we can get at if we need to convert to cash. And I think -- we don't have a precise number but are expecting to have somewhere in the neighborhood of a couple hundred million dollars of NOLs by the end of the year that we can use to offset some of the gains on sales if we need to.

And then this is just a quick snapshot of our debt at the parent level including where we stand currently with the Braves debt. That number is obviously going to change as we continue to build out the stadium, but we feel very comfortable with our capital structure. Thank you.

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Jim Meyer, Sirius XM Holdings Inc. - CEO [5]
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Good afternoon. It's my pleasure to be here and tell you about Sirius XM for the next 25 minutes. Skip that one. Skip that one. Here we go.

First and foremost, I just need to remind you very quickly again what we are at a glance because we are more than just the radio service. We are obviously in the audio entertainment business. But what you may not know, for instance, we are the leading provider of traffic data to almost virtually every OEM brand in this country today. We also have weather services we provide to vehicles, boats and aircrafts. And with our Agero acquisition, we are now moving rapidly towards being a leader in the safety, security and convenience services that are provided to automobile owners. And today in our core audio business, we just crossed 29 million subscribers; more on that in a moment.

At our core service, we offer about 150 channels of curated. We think curated is a very key, important thing. I think now you are hearing more and more people talk about how important curation is. And we combine that with a very extensive offer of talk, news and sports.

We have our own satellite delivery network; that is our own private network that obviously works everywhere in the United States, and I mean everywhere, coast to coast. And then finally, we stream our service over virtually almost every device out there to make it easy and convenient for you to use it outside of the car.

I think it's important to focus early on about what are the unique value drivers of our Company. And first and foremost, it's both -- and I want to emphasize the word both -- our growing subscriber base coupled with our high variable margin drives predictable cash flows. And if you look at our model, we are operating our model today at right around the 70% gross margin. And our business continues to scale very, very well as we add subscribers.

Second, and I truly believe -- I get a lot of questions about how do you think you're going to continue to do well. Why do you feel so confident in your position? Today, we're factory installed in 75% of every -- of all the new cars sold in the United States. And that's really, really good position. Frankly, it's a position we have worked really hard to get and one that we like to crow about.

It hasn't been easy getting here. We've had a lot of patient investors over a lot of years. Today we still have over $4 billion of gross NOLs still to be utilized. And finally, we are well on our way, and we will talk a little bit more in a moment, with a substantial capital return program to our shareholders.

Well, first and foremost, what are we about? I can tell you first and foremost it's always about the content. It takes more than the content to be successful in our business, but it starts with content, and that's what people pay for. We believe we have unique and compelling programming. And this year, we not only have added new channels -- a good example is our new Fox Headlines 24/7 channel -- it's channel 115. If any of you haven't listened to it, you really should. It takes the win-wins -- the wins concept here in New York and instead does it on a national basis. Quite unique. It's exclusive. It's a channel we developed exclusively with Fox News and one we introduced about three weeks ago I'm really pleased with.

At the same time, we've also renewed all of our sports deals. And if you look at our NFL, baseball, basketball, hockey, we are well-negotiated now out several years. So we know very well now what our costs look like in these important properties for the next five years.

I will take head-on the question I know I'm going to get and I get, seems like, five times a day. Hey, Jim, what about Howard Stern? Love Howard Stern. Howard's agreement is up at the end of this year. I'll start with Howard's show has never been better. Never been better. And, number two, if you listen to his show and you talk to Howard, Howard will tell you that he loves working at Sirius XM and that he is in a great place. He will also tell you that he and I have a great relationship and that we only disagree on one thing, and that's value. (laughter) And so my message to you is stay tuned. We are working very hard. I would -- I'm hopeful, and I would very much like Howard to be a part of our service for many, many years to come.

We also bring in and out pop-up channels. And I will tell you I found these to be much more successful than I thought they would be when our creative people brought them. For instance, we ran a channel for 30 days called yacht radio. And you cannot believe the amount of coverage and amount of emails we got that people found that, and they loved that format for a 30-day period. And they are clamoring for what's the next one you are going to do and cycle in and out.

We do a lot of town halls. There is not any major piece of entertainer -- any major piece of entertainment that does not come on our network to promote their new album or their concert tour, and we take good advantage of that.

And then finally, we are broadcasting virtually all of the festivals that have become really a way of life in the music business now and something our listeners value very much.

A lot of people ask me, gee, do you -- can I stream your service? Well, yes. You've been able to stream our service for several years. We have spent a lot of money, I will tell you, in the last two years really upgrading our app. Today if you go on either in the Apple Store or you go to Google, you'll find our app in both cases. It's rated right around just a little bit more than four stars. It works great. And every day, more and more people are streaming our service as a complement to the experience they get in the automobile.

We are also in the connected vehicle services business, and I want to take a moment here. We are the leading provider of connected vehicle services. And fundamentally, what we're concentrating on first is safety, security and convenience features. And I can tell you virtually every automaker is now building these into the offering that they are offering their customers and primarily for one reason: customers value automatic crash notification in a big way.

Believe it or not, customers also value door unlock. It's amazing when you go to one of our call centers and you realize how many people still lock their keys in the car every month. And we can remotely unlock it with just the touch of a button. They can unlock it through an app on their phone. And so automakers are driving these all throughout their vehicle lines. This takes a long time. Okay? They don't do anything fast, and it takes a long time.

What I can tell you is that by the end of this decade, I don't believe -- I believe the vast majority of new cars -- pick the industry, 18 million, 17 million, 19 million, whatever it might be -- the vast majority of those cars, trust me, are going to have embedded LTE or better modems built into them. And this provides a plethora of new opportunities for services that the automaker can develop and, quite frankly, we can develop.

Why did we get in this business? We got in this business for two reasons. One is I believe we can make good money around selling safety, security, and convenience features to customers. It is a lot like our own business: you buy an automobile; we give you a trial, and then we market to you to subscribe. We convert you, and then we keep you on a monthly basis. So it has a lot of synergy to what we do every day with our audio business.

The second reason, though, and maybe more important we got in this business is that I have a fundamental belief -- remember what I said a minute ago: the auto industry is going to change. There is no question. And I think having a seat, working with them -- and I can tell you with one automaker, I won't tell you which one, we just signed off their 2018 model year. 2018 -- signed off; not going to change, okay?

We know what they're doing. And by working with them and helping them develop their connected vehicle architecture, I think it puts us in a really unique place to watch what they're doing. And better yet, it should give us a good chance to navigate a successful path for Sirius as that architecture rolls out.

We started small, and since we have bought the business most recently, some of you may have seen about 30 days ago, we announced a extensive long-range deal with Toyota to be their exclusive connected vehicle services provider for many, many years. And I will tell you we have major ambitions in this business and stay tuned for more announcements. And I don't mean in six months; I mean in the near term of other auto OEMs coming under our umbrella.

So when I was looking at these charts last night and just going through them briefly, I couldn't help but reminisce. And that is many of you may not know, I joined this Company in April of 2004. And in April of 2004, Sirius had about 300,000 subscribers and XM had about 1 million subscribers.

And I think it is truly remarkable if you think in 11 years, we have gone from a business that had, call it, 1 million to 1.5 million subscribers to one that at the end of this year will have at least 29.3 million subscribers. I don't know of a lot of other businesses that have grown their subscriber base that fast.

And what is that a testament to? It is really a testament to one thing: our compelling content. Our compelling content. Okay?

And when we started in the satellite radio business -- when I joined in 2004, the fundamental question asked was, gee, will people pay for radio? Well, I can tell you now 12 years later, 29.3 million pay for radio every month.

It is a business, though, that has not only grown well, but we really have a good business model. And I'm proud to stand up here in front of you and tell you that over the last four years, our CAGR revenue growth has been 10%. You can see it in the top line now when we are rapidly approaching $5 billion. But more importantly, our EBITDA growth has been quite remarkable, and you can see now we are certainly expect to be north of $1.6 billion in EBITDA.

And as importantly, we have told you for several years now that we have a very scalable EBITDA model. And this year, our EBITDA model will average -- come in somewhere between 36% and 37%. And we think that's truly world-class out there today in the subscription business.

More importantly, our model translates to free cash flow very, very efficiently. And so as we go through and look at our cash flow, our cash flow has had in the last 4 years a CAGR of over 20%, which I think is truly, truly special. But as important -- now this is a point I want to make to you and I want to be clear with all of you: we run the business for cash flow.

People ask me all the time, well, is it about subscribers or is it about margin or it is about this. And I will tell you it is about cash flow. That's the principle that I try to drive through the organization every day. And as importantly -- and it's a measurement we have talked to about a little bit -- we also run it for free cash flow per share.

And when you take the story of the rapid growth of our cash flow and you marry it with what I think has been a pretty remarkable share buyback story, you see that our free cash flow per share has shown a 33% CAGR growth over the last 4 years.

Outstanding fundamentals. It is easy to sit up here and tell you what the future is going to be and how we're going to be better three years from now. I stand in front of you telling you we are doing pretty good right now. I'm really pleased with the first 3 quarters of this year. As you look, we're up 8% in subscribers, 9% in revenue, 16% in adjusted EBITDA.

As importantly, while I showed you those EBITDA margins through 3 quarters, we're already at 37.4%. So when I say I think we can grow this to a 40%-plus EBITDA margin business, we are driving towards there right now.

As you look at, and people concentrate on our subscribers, and I would suggest you concentrate on two things. Not only our subscribers, but how big are our trial funnels? And what you'll see is that we are having remarkable growth in our trial funnels.

And by the way, the blue box represents the new car business. And while the new car business -- it is a great country, trust me, ladies and gentlemen. No one is happier about the amount of new cars sold in this country than me.

But as you see the growth in the blue boxes, you get a good idea of what's happened to our new car trials. And while it's been nice and we really, really appreciate that, the orange boxes are really the impressive story here. And that is the growth in our used car trials. Remember these are the same vehicle. In this country, there is 240 million vehicles owned. The average owner keeps the first car about 71 months. Every vehicle is owned about 3.1 times.

And what has now really resonated in our organization: that gives us three chances to get a subscriber. And we're working really, really hard on that and it is really beginning to pay major dividends.

The used car market is more than twice the size of the new car market. One of the cultural things we have had to adjust in our Company is when you asked employees in our Company two years ago how many cars are sold in this country, they go, oh, pick me; pick me -- 16 million, 17 million, 18 million. Wrong. Closer to 60 million when you add in a 40 million kind of -- 43 million kind of used car market.

It is a very, very big market. And it is one that eventually, it is pure math. If we're in 75% of the new cars and we stay at it for a long, long time, 71 months later, 75% of the used cars have to have SiriusXM Radio in it. It's almost like a paid annuity, and it is ours for the taking. And it is one that I can tell you we are working extremely hard on and I'm really pleased with where we are right now. More to come in the future.

This chart is really important if you are an investor in our Company, and that is the enabled vehicles will grow from 2015 to, call it, 2025, they will more than double. And by that time frame, we will have over 180 million vehicles out there with our technology embedded in it.

Why is that important? It is important because it gives us a great look at new car buyers. It is important because as you get out towards the end of this decade and early in the next decade, the used car trials will be as big or bigger than the new car trialers. And then finally, as you get out to let's call it 2023; let's pick the 180 million actually in 2025. Of that 180 million, I can tell you at any given time, somewhere between 45 million and 55 million of those cars will either be subscribing or will be active in some type of a trial.

What are we going to do with the rest of them? Okay? We're going to spend, and it's built in our business model, $10 billion building out this network. Building out the [slate]. And yet we haven't even figured out I think some way to monetize the most valuable part of it, which is the unsubscribed radios. And that's a real -- I think people always ask me strategy. Are you going to buy Pandora; you're going to do this; you're going to do that. I will tell you: answering this question is our first most important strategic question.

What's next for SiriusXM17? Well, we have a new technology that we have codenamed SiriusXM17. And essentially what it is -- very easy -- is another question I get is, oh, aren't you really afraid of connectivity in the vehicle?

Absolutely not. Connectivity in the vehicle for me is a good thing. And why is it a good thing? It lets us take our powerful one-way satellite network and combine and use all of the good things of the massive wireless networks in this country to create a very unique entertainment and customer service experience for our customers. You'll hear more about this in the first half of next year, but this is a concept I'm really, really excited on and something that I think will pay off a lot.

Another point is that when we merged Sirius and XM -- and I think we really did a really good job on the merger -- but we did all of those things you would expect us to do. We combined the service offering into one. We had two different departments that sold radios in the aftermarket. We combined them and got rid of one. And we did all the classic -- we got two finance groups; we got to one. Two accounting; got to one. All those things.

The one thing we couldn't do is we couldn't combine the spectrum. And the reason we couldn't is that when we merged, we had a whole group of automakers, about 55%, who were using the XM spectrum and we had about 45% that were using the Sirius spectrum.

And if we went to either one of them and said we're going to phase one out and convert you over to the other, they all would have said that's fine, but we will just stop for four or five years and then come back to us once you have that complete. Could not do that.

What I am pleased to tell you today is that we are in a good position now that we will free up one big chunk of that spectrum sometime in the middle of next decade. And it takes a long time, but the new news here is two things. One is is that we now have a very clear committed path from every OEM on what their technology roadmap is over the next five years and how they will transition all of their vehicles to one network.

The second case: we have now funded and we are actively developing a radio I call wideband radio, which is an entire new chipset that efficiently looks at both spectrums. Efficiently looks at both spectrums. And I would really hope we are getting those in cars sometime around the end of this decade.

And you say, yes, that's a long time. When you're in the business I am in, it is not very long. Remember: I told you we just signed off 2018 model year today with a major automaker. This will come very, very fast for us.

What does that mean? That means that we have a whole additional use of a big piece of spectrum that we can do whatever we want with. And by that I mean on one hand, we can choose to offer another 250 music channels if we wanted because we are not confined with any of the algorithms or compression technologies of the base.

Second, we could use it to do video if we wanted to: short form, long form, whatever kind you want. Third, quite candidly, maybe we will use it to help the transition of autonomous and driverless vehicles in this country.

I don't know, but what I know is we're investing and taking the steps so that as you invest in our Company, there is a clear path how we will continue to do well, not just in the next 3 to 5 years, for many years beyond that as we develop really smart things to do with this new spectrum.

So in summary, I believe we have a best-in-class business model. Our long-term growth perspectives are great. We're in about 80 million vehicles today. I will bet you a lot of money we will be at around 180 million in 2025. There will be another recession; there will be another downturn sometime. I can't control that. But what we can control is keeping that penetration rate in the 70% to 75% change, and we are focused on that a lot.

Second, we have a great business model. We have unbeatable content and I cannot emphasize this enough: just having content is not enough. Ease-of-use really, really matters. And ease-of-use matters in these devices. Ease-of-use really matters when you're going 65 miles an hour down the highway. They are two different experiences and we have worked really hard on making that experience easy to use in the car.

We have a model that leverages our fixed cost tremendously. We have very high variable margins, which we talked about a while ago. And as importantly -- maybe this is what made us so attractive to Liberty -- we have very low taxes through at least 2018.

And then finally, when you invest in our Company, you're getting a call on what we might do with the spectrum as we free it up and where we might end up with the connected vehicle services business.

One thing that was taught to me when I was young guy and I didn't get it then and I finally really do get it: business models matter. We all tend to focus on the shiny lights. I think Greg's little spoof on music was exactly a spoof on that -- the shiny light. Everybody is going to do all these music services. None of them make any money, okay? We do. And one of the reasons we are much more than just music.

And if you look at all of those EBITDA margins out there -- Pandora, Netflix, the darling of I am sure all of you: 7% EBITDA margin. Ours is 36% and that is something we are awfully proud of.

And finally, what are we doing with all this cash flow? We look at investment opportunities, acquisition opportunities all the time. I would say to you there is virtually nothing we haven't looked at. But I will tell you the bar is high for us. The bar is high for us to make those decisions. It either needs to be strategic or it needs to be immediately accretive.

And with that on one side, today, we think the best use of our capital is to return it to our shareholders. And so I am pleased our Board just recently authorized at the end of this summer an additional buyback, which takes us to about $8 billion -- will take us, our total authorization, to $8 billion. Thanks very much for your time.

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Michael Rapino, Live Nation Entertainment - President, CEO and Director [6]
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Thank you. Pleasure to be here. Think I'm excited. We didn't get a tracking stock today. We are now Liberty Media, so we are the pride and joy. We have an incredible story. I think it is one of the reasons Greg and John have always thought that this business has unique position in the marketplace. So I am pleased to take you through what we are up to.

So first of all, in our business or the entertainment live business in general, there are four levers that matter. It is all about first acquiring the content, getting those shows, selling tickets to those shows, and maximizing capacity, monetizing that fan when they walk in the door, and then selling an advertising package to that platform.

As you can see year over year, we're again driving all four of those key levers up. And I'm going to repeat this theme somewhere, but also we are coming off a 2013 record year, which was a 2014 record year, so the bar was high and we are continually growing this business and the four levers that matter.

And from those core business levers, the financials are being driven in the right direction. All three, both top line and bottom line, are growing and we expect this to continue as our levers in our business continually grow.

And one of things we are proud about is 10 years ago next month is when we went public. We have had an incredible run over these last 10 years. We have created an incredible flywheel, as Greg says. This business now between its concert division, its advertising business, and its ticketing division has created a real global scale business model.

We will finish 2015 again at a record pace, both from a financial and a business metric perspective. And we think we have set up a great business on a global sense to continue a long-term growth path.

So why are we going to grow this business and why are we so bullish on it? First and foremost, just because on a global economic basis, live music is growing. It is in a robust industry. We don't have all those challenges that the digital distribution business is having on who is buying what and what they're going to pay for.

At the core, the consumer right now is spending a majority of his dollars going to live shows in his music spend. In every survey we do, year over year, more consumers are going to live shows than last year or their intent to go in 2016 is higher than 2015.

So on a global basis, a lot of this is due with the Millennials, a lot of experiences, a lot of this has to do with global expansion. That young 19-year-old in Colombia or Eastern Europe who never had live entertainment before, we're bringing Rihanna to that marketplace because of the global connected world and YouTube and all the ways that those young fans now experience and discovered these stars.

So globally, we believe this business will continue to grow for many years. And you look at all the data about the Millennials, what they value most. Experiences now are more important to them than the other generations in terms of goods. When you ask them within their experiences what is important to you, concerts rate right at that top.

So we know that that next generation around the world are going to value that experience, going to that festival, going to that VIP event at the concert, sharing that with their friends.

So we believe that we have the tailwind of an incredibly strong, robust, global live business. Being the market leader we think we are. I'm going to take you now through our four core focuses on how we're going to grow our business off of that platform.

So first, we are going to continue to do what we've been doing is consolidate on a global basis. We are now in about 41 markets on a concert perspective. We have been growing both on a geographic perspective and on a vertical in terms of buying festival companies in the US or bolt-ons to help out our programming.

We have lots of opportunity. As large as we are on a global basis, we are larger than every other promoter in the world combined in terms of pure concert numbers, but there is still a $13 million business out there for us to acquire. So we have a long list on a roadmap of tuck-ins, bolt-ons, and larger acquisitions that would continually excel our business.

And because of our flywheel and our scale, we just have the efficiency no one else has. When we acquire an asset, we can take that asset, apply our Ticketmaster ticketing system to it, bring on our expertise around talent production, bring sponsorship to it. We can incrementally drive a higher AOI.

We used EDC as an example. It is the largest EDC festival in the world -- EDM festival in the world. We acquired it. The time we come in there, put their tickets on Ticketmaster instead of the crappy system they were using, help them with production expertise and efficiencies, and start selling sponsorship to it, we in a year of time can increase AOI by $20 million. So generally, anything we're going to buy, even if it is a slight premium, a multiple, we're going to make that thing very accretive very fast with our scale.

And the second place we're going to continue to scale is on the ticketing side. As Liza said, Live Nation is in 41 markets where they are driving content. Ticketmaster has lagged behind. We're only in about 14 markets. Part of that has been over the last three years, our first goal was to rebuild our Ticketmaster platform so it could scale internationally for currency, languages, taxes.

So as that global platform is now more ready to expand, our first place we're going to go is just take our ticketing platform to these markets where we already have the natural content. We can feed our own system and create a market share business through that.

The next part of what our business we call it the Disneyland business. The first part is to make sure the concert -- get the Rihanna tour, get it on sale. The second piece of our business is 60 million customers are walking through our doors. We are Disneyland.

We spent most of our time over the last few years building a great global network that can acquire the content, the tour, the show, make sure it gets on sale. Now we have to spend more time on our DNA of saying how do we truly monetize that fan on site.

Recently we hired a new Chief Revenue Officer from Universal/Disney. That's the kind of DNA we're bringing in. When we look at our fan on site, we know that if we upgrade the products available to them, we can do a better job.

So this summer, for example, we tested six venues where we make sure we had Wi-Fi connection. We gave them an app; we let them buy beer cashless. We let them buy beer delivered to their seat. We had a fast lane. We let them operate at their seat, buy merchandise.

All of those things that if you are there for a two hour, but especially if you are for a three-day festival, when you start coming to life and actually can start upselling and delivering convenience and products on site, we see a big increase in per head. So currently, we lag behind the best in class, so we think this is a huge opportunity. If we added $5 per head and got up to $25 per head on 60 million customers, it is all incremental to the bottom line.

So we're going to spend a lot of time on this over the next two years. As Wi-Fi now, either naturally or where we need to augment it, gets connected, this provides great opportunity at scale for us to upsell our customer.

On the Ticketmaster side, I'm going to talk about our two core focuses. First is just continually building our secondary market. It is an $8 billion business. We have the superior product in the marketplace; we are the only company that at scale can offer you a primary ticket to Rihanna and a secondary ticket to Rihanna in one marketplace.

So that has been a huge piece of why we've been able to steal market share from the secondary business because we have it in a trusted marketplace. And it is instantly available at 10:01.

So we got great opportunity. We still have a lot of awareness to build in the US. If you ask customers, they still don't understand that we have secondary available. So we got to do a better job on the awareness part to grow that market share, and then we are rolling this out across most of our international markets where there is no real StubHub! leader. We are the leader in the UK, so most of the other markets we will be the leader in this category. The acquisition cost of our fans are much lower.

And the big focus of Ticketmaster -- some of you that maybe have followed our story sat here a few years ago when I put up a green screen on Ticketmaster. When we merged with Ticketmaster, we inherited a 28-year-old platform. That was a green screen; I put that slide up and said, that's where we're going to spend some money.

We are very proud that we're going to launch our Ticketmaster ONE platform by the end of the year throughout our clients. This platform is not the old platform. Ticketmaster was built on a very transaction model. Put a software platform in a venue, it could sell a ticket with minimum functionality. This platform gives the box office and the venue incredible tools to increase sales.

The number one way we will grow our $25 billion GBT isn't so much exactly what we do with our app or our website, but it's more important is what all those venues and event builders do with their event. So the perfect example is historically if you built an event on Ticketmaster, you priced it three ways. You put it on sale, you had no real ability to reprice it, look at the market, drop prices, repackage it. A very manual long process.

This platform gives everyone that is putting a show on sale the ability to build it themselves. We have got price yield tools built in that will tell them what they should price it at. We have got marketing tools. We got an API so we can distribute, a buy button to the Apples and Siris and other places that may have an audience for us.

So this provides that event owner the opportunity on a daily, hourly basis to continually look at his market, what's sold; how do I better price this? So by that time the show day comes, we have sold all those tickets. So they are the key to our business. We called it Ticketmaster ONE because we modeled it after the Salesforce1 strategy. But at the core, this is a great hook in the mouth.

When you have the amount of venues we have with this software installed in their business and we are now a fundamental important part to their business, from a CRM, a data analytics, and a marketing perspective. And ultimately sell more tickets for them; this is the way our GBT increases at the main checkout.

The number one problem in event conversion isn't actually awareness. It is discovery. That's a big theme in the music business on the Apple/Spotify world. It is not a discovery problem in our business. When Adele goes on sale in a couple of weeks, they will sell out in 4.2 seconds with a press release. There is no awareness problems. Thanks to the social world, the world is doing a magnificent job reposting and letting the world know what's for sale.

The problem we have with our business is a pricing problem. Because we do not price the product from the beginning on a logical market demand. Meaning, the agent tells me that Def Leppard is worth $400,000 in Indianapolis on a Tuesday. So you divide that by 10,000 seats, and you price at $139, $79, and $49.

There is no logic to is there 10,000 customers in Indy that want to pay that price? So we go on sale. You might sell 5,000 tickets to the committed fan who says I got to go. Those other 5,000 tickets you could screen, go door to door, and tell people that Def Leppard is coming to town.

Number one way we convert them is our biggest partner to date has been a Groupon or our own database is when we drop the price. When we reprice it to say you, the casual fan, you are thinking of going to Def Leppard. You have been twice; it is Wednesday. You'll only go to 2 shows a year. It is a big commitment. At $79, you weren't willing to get off the couch. When I give you a $49 offer, you then call your friend and say, let's go.

Price is the number one way we drive conversion and ticket sales. Why you hear us always obsess about give the guy, give the event owner, give the box office the tools to know what to price it. That's the way we drive more sales.

So this is incredibly important. No company in the world, none of our competitors are anywhere near having a software system that is intelligent. Everyone else is still try to figure out how to have a transaction platform. It is a huge opportunity for us and this scales on all screens. It is built by some of the best engineers in the world.

We spent the last three years rebuilding our engineering department with our engineers and our product people from the Amazons and the best companies in the world. It is amazing the amount of talent we are able to attract. When you put a new mission in front of young engineers and say do you want to solve a great problem? How you and your friends can buy and get to a show better. It's a great mission, and we have been able to put a great product on the table that will come up this year.

The final piece of our business is now -- is the advertising. At the core, we are a media company. We have a lot of content called the show: 25,000 shows. 500 million customers are going to buy tickets to that, so a magnificent audience, lots of data around that. And from that, that provides us with the most unique ad platform in the music space. Nobody has the scale on the two levers the brands want music: onsite and digital mobile.

So on the onsite, as you can see, we are a league on ourself. So if you want scale and you are a Microsoft or you are a Burger King and you want to talk to a certain segment on a scale basis on a real engaging, direct manner, we're the only one that can deliver it. We can also deliver you between our mobile apps and our online business a magnified distribution on digital platform.

So these two pillars have been why our advertising businesses has been growing at double digits. We think we have a huge opportunity in the pie still left, especially as we hear brands structurally looking to figure out how do I spend my dollar more efficiently?

You have the data. You know where that customer is on a Thursday night. You know what seat he is in, you know a lot about him, and you can also magnify that through your digital platform.

The final piece of our advertising business is about our content opportunity. You have heard me talk about it last year. When you look at it and think that venue now has become the studio. We have 25,000 shows, which in theory then is about 75,000 hours of content. You look at social media -- number one shared event on any social media platform is a live concert. It is incredible, important an event to a customer.

But more importantly for us, all the costs have come down now that is an affordable opportunity to create short content. So we have been testing with many distributors, whether it is Snapchat -- and here's a perfect example why we can beat anyone else in this space.

With Snapchat, we can geofence our EDM Festival -- 400,000 customers in a 3-day weekend. We can geofence them. We can deliver them a branded story through advertisers and generate over $500,000 that weekend in branded stories specific to that customer in a very isolated target environment.

On the brand front, we have lots of brands lining up, from Yahoo! earlier in our days to Red Bulls to G90s to say, geez, you got all this scale in festival and content. We want to stream it. Siri has been a big partner of ours, and we think we got a bigger opportunity to now even increase our monetization of this place.

And LNTV, our venture with Vice, one of the things we wanted to make sure we have was when we are doing an RFP for any brand and they say we love your onsite; we would love some content on our destination platform. We want to be able to offer them, yes, we can stream a show. We can give you certain pieces of a show. We can also create some content.

Do you want a documentary behind the scenes? You want the making of Lollapalooza? There are a ton of stories that can be told around that live show. And we've been able to sell those as a package to our brands.

So we're going to continually look at how we monetize that concert, the stories around the backstage. Again, the one competitive advantage I have over most of the music companies is you can't show up at my festival if you are a different company and film.

You can't show up at the Wiltern if you are Pandora and say I am streaming the show tonight. That's a closed distribution system because it is our show, it is our venue, our access. So we have the free venue, if you want to call it, of the future and we have them at scale and a global basis. We think we can create a lot of content that brands in today's world, especially on a mobile format, are looking at us to deliver.

Thank you.

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Unidentified Company Representative [7]
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This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial performance, new service and product launches, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

These forward-looking statements speak only as of the date of this presentation and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any such statements to reflect any change in our expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. Please refer to our publicly filed documents, including the most recent Forms 10-Q and 10-K, for additional information.

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Greg Maffei, Liberty Media Corporation - President and CEO [8]
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Thanks to Michael for a great presentation about what Live Nation is doing. And even more importantly where it go, which I think is pretty exciting.

So we are on to the final of this year's trackers; be more next year. TripAdvisor is an amazing Company and you're going to hear a lot more about it from the founder and CEO Steve Kaufer in a sec. But I want to give a few highlights at least how Liberty looks at it and why we remain very excited about the potential.

Trip has 350 million unique monthly active users. That's just a stunningly large number. Global enterprise. 290 million customer views is a UGC database that we think builds a very large, competitive moat and gives them a significant scale advantage over competitors. And I will get into a little more of that in a second.

Meaningfully, over half the traffic is mobile and they have 230 million app downloads. These are just stunningly large numbers. Importantly, in the last year, they have made a transition, which we will talk more about, to instant book, and they are seeing great traction in that.

And that allows them to leverage the traveler interest, which initially starts with a discovery and learning and have a lot of pieces, but we have been monetizing primarily through hotels into other areas like attractions, restaurants, and vacation rentals. And investing in these adjacencies may reduce current EBITDA, but we think it sets the seeds for a lot of potential uptick and are very excited.

While all that is going on, the hotel cash flow remains quite high. And in this last few months, we have enhanced the management team with Ernst and Beth, the new CFO and Chief People Officer.

So I mention this -- and I think you are all aware, but if you go back and look where this product was four years ago: multiple partner windows, not at all customer-friendly in a mobile environment, and really not directed as much towards moving from the just looking phase to the actually booking your trip, and the transition that this Company has made all the while at great speed is quite amazing.

Metasearch two and three years ago, and now where all of the prices came up in one box, much more mobile-friendly, much more customer-friendly. And now the movement to instant book. I think you are hard-pressed to think of a technology company which undergone as large a transition in as short a time frame -- really two transitions -- all the while having the business exploding.

Why is instant book important? First, it is an additional monetization opportunity, but even more, it deepens our customer relationship. The ability to efficiently complete the reservations on TripAdvisor, removing friction from the booking process, allows us to have a tighter relationship with our hotel partners and allows us to have a tighter relationship with customers.

We've continued to expand instant book: 7 of the top 10 global brands, 70 chains, more than 235,000 properties. And obviously last month, when we announced the strategic partnership with Priceline, the market immediately understood how valuable that was in terms of opening up incremental information and capacity in the hotel space. As of September, we're available across the US and UK and we will be rolling out in other international markets very shortly.

So our investment thesis and why we like this so much is pretty crisp. Travel is a really big market. Even big by Donald Trump standards. No, it is a huge market that lends itself particularly well to e-commerce and the high-quality, low-cost UGC content that the Company has is difficult to replicate.

The process of instant book is allowing them to build deeper transactions on both the traveler side and the supplier side. And while we don't monetize hotel traffic as well as OTAs today, think about it: they're coming to book. In our case, they are coming to plan. It is earlier in the top of the cycle. We are at the top of the funnel.

We have an enormous advantage. We have the potential to improve both conversion and commission, but also, we have a much lower cost of customer acquisition. That high-frequency UGC visitor is far less expensive than most SEM or SEO alternatives, and we have an opportunity to set up a P&L and a business model over the next few years, which allows us to have expanding revenue monetization at the same time as a very low cost of customer acquisition. I think it's very exciting.

So the model is attractive. The opportunities to extend the model into restaurants and attractions are attractive. The high free cash flow generation is attractive. It is in the middle of a transition. There has been volatility. That is an opportunity for you as investors to look when that volatility occurs and take advantage of it.

And lastly, we are in it for the long term. So we are very excited. And with that, I would love to introduce Steve Kaufer.

(video playing)

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Steve Kaufer, TripAdvisor, Inc. - President and CEO [9]
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Thank you very much for the opportunity and let me dive right in. When we were listening to Live Nation, the conversation moved to experiences. And while in no way, shape, or form refer to myself as a Millennial, I went to Antelope Canyon right here in the picture because I was looking for that travel experience. That was what was going to make this week off that I had and it was going to be memorable. Yes, the hotel was important, but the experience made the trip. And when we think back to all of our vacations, that is what we think about, the experience, the people we went with, the great time we've had. That's the business TripAdvisor is in, helping travelers all around the world plan and now book the perfect trip.

So, as mentioned earlier, we are the largest travel website. We have more traffic coming from more people all around the globe, lots of reviews and opinions, lots of what makes this incredible content moat, incredible barrier to entry, the incredible ability for Steve Kaufer, who never even knew that Antelope Canyon in Page, Arizona existed until I saw the top things to do and said I need to go there. And it's -- if you ever want to go, it's awesome. It is a tremendous opportunity to have that type of travel experience.

Revenue growth, profitability. In the midst of tremendous change in our business model, continued revenue growth, continued profitability. We've been doing this for a while. We do know how to do it pretty well.

What underlies this continued growth is the fact that we have travelers generating content for us every single minute of every day. It's 190 million -- 190 reviews per minute now, so in the time I'm talking, another 1,000 reviews have been added. Every TripAdvisor employee goes to sleep at night. We wake up the next morning and oh my gosh, the product that we have built is better for each and every one of our additional customers, our additional travelers. They found some new gem. They've got a new question answered for them automatically by the hotelier, by the restaurant owner. It's an amazing force that allows travelers to learn so much more.

And now I bet if you folks have traveled recently or plan a trip and to keep an eye out, you will see the TripAdvisor brand appear wherever you are traveling because folks who are on our site -- the sorry, businesses that are on our site like the endorsement that all of these worldwide travelers have given them. So they are doing a piece of our marketing for us. But if you look, it's highly ranked. It's a beautiful review. You get the details. You get the Q&A. The candid photos are consumed incredibly all of the time. And almost every spot you look at, you want to go there and that's the experience that we are creating.

When we look at the size of the marketplace, oh my goodness, over $1 trillion and growing. As we get more interconnected as a global planet, of course there's more and more global travel. There's more and more local travel. It's wonderful. It gets easier and easier every year, notwithstanding the TSA. And now we get into what goes online, which in turn is growing every country, every market and that little dot of TripAdvisor, we are pretty proud of being over 1 billion but it's so much opportunity in front of us, and we are already impacting so much of it because of our reach, that 350 million unique users coming to TripAdvisor. They get to see the opportunity. They get to be inspired. And we are pulling them down the purchase funnel with our ability to actually book your hotel, to book your attraction, to make that restaurant reservation while you are already on TripAdvisor.

We started in that research phase. Hey, we were the site of travel reviews and then we added photos and restaurants and attractions, expanding beyond just hotel reviews. And then we added that price comparison because no matter how big various brands get, no matter how big various OTAs get, consumers like yourselves want to be able to know that they are getting the best price, or at least a fair price. Price comparison, it's here to stay, at least in the travel industry.

So you start looking. You get inspired on the trip and now you move into comparison mode. I want to know that I'm getting a good price on this hotel, maybe the best price. We've got it. We've had it for many years.

Now, what's next? Instead of just sending our travelers off-site to go book somewhere else, we added the Book on TripAdvisor button. And it was a little bit slow to get going, and we are still in the middle of that transition. But think about it. When we have all of the OTAs that we want, when we have all of the chains, all of the independent properties in our Instant Booking Store, the user comes, they look, they read the reviews, they find the best property, they plan the best trip. They move into the booking funnel. They see all of the prices. They now have an opportunity to book at the best price. And then they move along to On The Trip where, again, we offer the best available information in our mobile app available for you anytime any day. We call it plugging the leak because we have so many travelers coming to TripAdvisor, but in fact they are clicking off to our client sites.

And if you think about your own travel behavior, you think I might come to TripAdvisor. I read the reviews, I pick the hotel and I click off, and then I go to an Expedia or a Priceline, other excellent travel sites, all of them our clients, and you are not quite ready to book yet. Why? You need to check with your spouse? Why? You are not quite sure you're going to take the trip. Why? You are just not ready for any of a wide variety of reasons, but when you are ready to book, you go back to a website and you book it. Unfortunately, most of the time, it's not our website that you come back to. It's the website we sent you to, the OTA or the BrandDirect or the independent hotelier. are.

But with Book on TripAdvisor, you enter this booking flow. You don't leave the TripAdvisor experience. You see the great content that we have to help you pick the room, to help you set up what you're going to do, how much you are going to pay, all of the information and the great price. And you're still not ready to take that trip, so you abandon. It's an empty cart for us.

You go home. You check with your spouse. You decide to take the trip, which you do often enough. And now what website will you come back to to finish the transaction? You'll come back to where you left off, which was TripAdvisor, because that was the site that offered you the great price and the great content, and we are here to take that booking, that traveler is very top of funnel and hangs on to them as they move down the funnel. That's what's so exciting to us in this initiative because, when you look at the number of folks looking for a hotel on TripAdvisor today and the number of folks looking for a hotel on Expedia today, they are not too far off. But when you look at how well TripAdvisor monetizes that traveler, it's a small fraction of what a traditional OTA monetizes, not because the intent is any different -- the person wants to book a hotel -- but because we are further up-funnel and we are not hanging on enough through the funnel. And that's how the Book on TripAdvisor helps us hold onto the traveler, given that great experience. And then we are able to do more, which I'll get to in a minute.

So, instant booking. We started off, signed up a couple of brands right out the gate. So now we are up to seven out of the top 10 brands. I'm sure more will come in our store at some point. And when you look at the broader set, it's actually quite a few.

The key is now in our engineering department in terms of how many of the smaller brands can we get implemented. Some might say the dam is broken. All the brands now want in. The commission rates are fair. It's a win for us because we know our travelers would like to buy directly from the hotelier, and now the hoteliers are on board and ready to take those bookings.

The Priceline group deal that we announced a couple of weeks of ago is phenomenal in that it accelerates the path that we were already on. We had stated publicly ready to go it alone without a big OTA in the store, but having Priceline in with their top pricing, with their 400,000 plus rooms available all of the time, great prices for those rooms, great content, the room descriptions in all of the languages we need, plus the customer support for the traveler in all of the parts of the world, in all of the languages, supporting all of the different payment types allows us to roll out this instant booking initiative quickly to the rest of the world. And that's what we are super excited about. It didn't change the strategy but it accelerated by quite a bit our ability to go to market. It's a good deal for Priceline. They are happy. If you listen to them, they are quite excited about it. It's a great deal for us in terms of accelerating the strategy, the roadmap that we were already on.

When we talk about having a traveler now booking on TripAdvisor, I now know exactly where that traveler is going, when they are going to arrive, as. Three days before they arrive, we send them a note, hey, what are you going to do when you get there? What are the moments going to be that are going to make this vacation great? By the way, you might want to book a skip the line tour to the Vatican now because they sell out. And it's online and it's on your phone. You can do it. Already have your credit card. How easy is that?

We look at the attraction business in general and say it's an opportunity -- it's a $1 billion opportunity for us that has us growing -- that has us nurturing this new business that has the same margins, same opportunity as the hotel business 10 years ago or 15 years ago. It's a lot off-line, highly fragmented now. It's bookable.

And we are bringing so much more inventory online. We're aggregating it. We are becoming the OTA for attractions with our Viator acquisition.

Restaurants, we have a lot of traffic. Restaurants, globally and in Europe we're very strong in the restaurant reservation business, expanding in more geographies there. But the touch points that the restaurant review part give us globally is tremendous. It's our engagement vehicle to talk to travelers when they are not on the trip. All right? There's a whole lot of time. We'd like to engage you. We like to stay top of mind in being able to offer tremendous value in terms of restaurant tips, recommendations, and reservations where we can. It's a nice opportunity.

Vacation rentals have been a part of our business for several years, already made it to the transaction model and continues to grow as we see growth in inventory add to our ability to offer the traveler whatever they might be looking for.

We talked about research. We talked about price and compare. We talked about book, and we talked about on the trip. By the way, on the topic of book, I might add that, as of today, the Priceline group is now live on TripAdvisor for a small piece of our inventory. We are thrilled because they are a company that absolutely knows how to scale. And with that scale, we don't have to worry about our partner not being able to handle the volume of transactions that we can send, the volume of queries that we can send. So it was recently announced, but pleased to say we are actually live on a very small portion of our traffic already. We expect great things going forward.

When we talk about helping the traveler, cementing their emotional connection to TripAdvisor, getting them to experience the moments and deliver a little bit of love back to TripAdvisor for helping them, it's through the phone. Whether it's a restaurant tip, whether it's a guide to a city, whether it's helping them find the perfect thing to do and book the trip, TripAdvisor is there with you during your travels, earning your respect, your love, your appreciation so that we can be top of mind when you're coming back to book the next trip, as well as make a good chunk of money on the attraction business while you are in the market.

Then we try to stack ourselves up and say hey, there's always going to be threats. It's an incredibly fast-changing industry. We've gone through several model shifts in the past few years alone. But we look and say a really strong planning book. Not done yet by any stretch. We can do so much more in the true inspiration category. But then price comparison. We have flight price comparison. We have hotel price comparison already there. Book just getting started and already really strong on the trip but not as strong as we will be if we are able to see our roadmap through.

And then you can see how we compare to the many other folks who compete with us in one form or another, are partners with us in many cases but, at all times they are on the board because they are the folks who are buying for the loyalty of that traveler. And they are generally a global player.

So when we talk about financials, we break our business down into the cost per click. We put instant booking in there because it's really a different form of being paid but it's still the same notion of its that hotel category. And the focus is certainly on that Book on TripAdvisor, making the conversion of that very successful.

Display, we already have a lot of traffic, a lot of travelers. We will continue to grow. And our subscription and transaction business, attractions being a very meaningful part of that, will continue to grow and be a focus. It's the young plant that's going to blossom into a beautiful tree over the next several years.

A strong track record of revenue growth. You can appreciate 2015. We got hit by a meaningful amount of currency headwind, so that would've been even stronger. When you look on the EBITDA line for 2015, again north of 10%, 15% if it's currency neutral.

But I want to call your attention to the upper right, the segment data piece, where we are breaking out our EBITDA and our margins by our hotel category and the other. And that other piece will continue to be a big part of our business, but we are running it in investment mode. And I like to be very clear about it because, when I look at our attraction business, it is big and it's going to be or it will be very big. It's larger than anyone else's now, but we want to maximize the longer-term growth as opposed to take profit from it now. The same for vacation rentals. A huge category. Existing, existence, proof that says it's quite nice, we are growing it for the longer-term. When you look at restaurants, again, same part of the business.

Now, our mix and our mix by geography. I'll point out slightly more than half of our revenue comes from North America. That continues to shrink relative to all of the other businesses. The attraction business is a little more North American-centric, so it will shift in and out there. But we are a very, very global company, footprints all over the globe. Most of the major markets for most of our business. As we realize travel -- there is a unique piece. Each and every country thinks they are unique but everyone travels, and we want to tap into that very much globally.

With that, I leave you with the core thesis. It's a really big space. We are offering more pieces of the puzzle than anyone else to delight travelers from beginning through the booking, through the experience, through the sharing, on back. We've got a business model because it's UGC that generates a better product all the time. The leadership position, incredible competitive moat. We've been investing in mobile for quite some time because mobile makes that trip experience tremendous in market. Our Instant Book product is perfect for meta. It's going to be a fingerprint and I can book it and away we go.

Our platform is open for all hotels to participate, for all attractions to participate, for all restaurants to participate and any other categories we go in because we've got the eyeballs. We've got the audience that's ready to make this trip and it's up to us to put more and more product through that.

And then, for the next couple of years, you know my focus is on that Instant Booking piece because plugging that leak, because getting that traveler who's already on our site, without any additional growth in user metrics, we get the ability to take that traveler and turn them into a highly converting traveler, which in turn fuels more revenue per shopper for us, which in turn fuels all sorts of acquisition and delightful other opportunities to grow the business.

So with that, click once more and I say thank you.

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John Malone, Liberty Media Corporation - Chairman [10]
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Thank you Steve. Questions? Jason in the front.

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Questions and Answers
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Jason Bazinet, Citi Investment Research - Analyst [1]
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Regarding the two (inaudible)

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John Malone, Liberty Media Corporation - Chairman [2]
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Yes.

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Jason Bazinet, Citi Investment Research - Analyst [3]
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I guess, as a layman, I would think --

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Greg Maffei, Liberty Media Corporation - President and CEO [4]
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You are a layman? I thought you were a professional. (laughter)

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Jason Bazinet, Citi Investment Research - Analyst [5]
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I would've thought intuitively you would have been sort of a Sirius tracker and a Live Nation tracker as opposed to putting the Braves out there and keeping Live Nation with all the other stuff. Can you just sort of talk about the thinking behind that decision?

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Greg Maffei, Liberty Media Corporation - President and CEO [6]
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So your basic question if I could boil it down is we've got a bunch of stuff which isn't SIRI off on its own, so we've got a bunch of stuff which either could've gone in the Braves or could've gone into with Live.

And I guess one of the theses is that, post the rights offering, Braves are pretty self-sufficient, pretty standalone and not in search of incremental capital. We set up Liberty Media with Live Nation. There may be other things we can do. Those things that we build on in the music space we build on around the space that fit together. And the Braves aren't going to need that capital after we fund the initial amount. And there could be things that, as we liquidate potentially some of the other assets that are in the Liberty Media tracker that could fuel incremental investments and hopefully are synergistic.

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John Malone, Liberty Media Corporation - Chairman [7]
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Well, the Braves are also wholly-owned technically spinnable whereas the other tracker is a collection of investment positions. Right? Not by themselves spinnable.

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Unidentified Audience Member [8]
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Thanks. Sirius XM you talked about transitioning to a wideband chipset by 2025. I'm just curious because, in the past, they've mentioned 400 to 500 additional channels through that. But on the current chipset technology like on a Sirius or an XM, how much could you fit in current channels at the current bit rate? And I think you might have hinted to something earlier.

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Greg Maffei, Liberty Media Corporation - President and CEO [9]
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I think what it does is we're going to free up -- is Jim back? I let him be more specific. But the answer is, we free up a whole bunch more capacity. Whether that's used for incremental channels or other services or whether we are using it for -- to potentially find some other way to find value, I think that remains open. We have an opportunity to do bunch of different things but (multiple speakers)

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Unidentified Audience Member [10]
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Could you double the channels you have on the existing side?

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Greg Maffei, Liberty Media Corporation - President and CEO [11]
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Absolutely, absolutely.

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Unidentified Audience Member [12]
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I'm assuming you are going to do something. I'm just hinting at that.

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Greg Maffei, Liberty Media Corporation - President and CEO [13]
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I think we've got optionality. (multiple speakers) committed to any one of those paths. But I will let (multiple speakers)

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Unidentified Audience Member [14]
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Sirius XM has talked about briefly in the past that the bit rate has never been an issue for users, but I notice a lot of people are picking up on the bit rate compression and it's probably because it's 15-year-old compression and you guys can't updated on the cloud. But I was just curious. There must be something (multiple speakers)

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Greg Maffei, Liberty Media Corporation - President and CEO [15]
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There is better compression available definitely in the new chipset.

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Unidentified Audience Member [16]
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Thanks very much.

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Steve Kaufer, TripAdvisor, Inc. - President and CEO [17]
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Over here.

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Unidentified Audience Member [18]
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I actually had two questions. One, when you look at the $1.15 billion valuation that Forbes has for the Braves, do you think that encompasses the MLB Advanced Media in the valuation?

How do you really see sports developing? The conferences, the professional leagues, even U.S. Open are all tied up by ESPN and others through the middle of the next decade. But do you think everything really becomes much more direct to the consumer? And do you think there's a lot of optionality on MLB Advanced Media? And would you consider putting more money in there if the opportunity becomes available?

And my second -- sort of this is my flaky Harrigan question, when you look at the automotive market, you've got the flux in the batteries. You've got autonomous cars. You've got so many things going on. One thing that is happening is younger people are using Uber and all that and they are not buying vehicles. Now, when you look at these top-down numbers, the auto sale numbers are great. But is there anything behaviorally in terms of people -- the middle strata or the lower strata of the population not even owning cars that could affect things prospectively for Sirius XM?

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Greg Maffei, Liberty Media Corporation - President and CEO [19]
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So on the first point on the baseball -- I think Forbes' valuation is probably nonspecific when they throw that in there. They don't really have access to the Braves numbers. They really don't have access to all the other baseball teams' numbers. They really don't know the value of BAM maybe. I mean BAM could be worth an awfully lot of money. And particularly as BAM molds its business model from just being a provider of technology to potentially being a over-the-top sports service of its own and owning those rights, buying rights, extending their own rights, could be a lot of value. Unclear.

But in addition, I think if you looked at some of the revenues potential we have at the Braves and multiples that have been paid, that $1.1 billion could be very light, $1.15 billion could be very light compared to approaching 4 multiple and it will project the revenue we are likely to have. That could be very light as well. So I think that's a big who knows? And how it will be delivered over time, I'm sure you're going to see --

BAM has always done a very effective job of delivering baseball. Baseball may be the oldest sport but in many ways it's far and away the most technologically advanced. And Bob Bowman deserves a lot of credit for what he has built at BAM. The potential to see more of that distributed in various ways I think is going to be sliced and diced a lot of ways.

One of the things that baseball had is a lot of content. 162 games is a lot of content, and so you will see it divided up lots of ways.

As far as how the auto market goes, I don't know, John, do you want to go? Do you have any particular --? I'm happy to go, I just didn't --

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John Malone, Liberty Media Corporation - Chairman [20]
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No. Uber is ramping and car sales are at all-time highs. So if there is a correlation, it's hard to find it.

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Greg Maffei, Liberty Media Corporation - President and CEO [21]
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The other thing I would say is if you look at -- the average age of a car buyer has basically stayed pretty consistent in the low 40s for many years now. The reality is, we only touch the top 75%, really not entry -- entry-level cars. So maybe we're just not as impacted by that Uber trend. But you look and say, how our available autos are growing, it's still quite strong.

Here in the middle.

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Unidentified Audience Member [22]
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So a question on Charter and Live Nation. I know you've talked about in the past about the need to kind of have control of the operating asset. I'm wondering if the stake that you have now over the long-term, is that something you're comfortable with? And I know that Sirius, in the past, you've tried to kind of transact as an operating subsidiary. Is that off the table or will you revisit that at some point?

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Greg Maffei, Liberty Media Corporation - President and CEO [23]
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First, on Charter, with all due respect, that's the morning. But on the principle, I don't think we'd say we need control. We like to have influence in voice, some representation, some visibility into the structure, the capital structure, and into the strategy. I don't think that principle changes whether it's interactive or media.

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John Malone, Liberty Media Corporation - Chairman [24]
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That's right.

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Greg Maffei, Liberty Media Corporation - President and CEO [25]
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And on SIRI, WOULD we ever revisit buying the rest? You know we are at 61%-ish and current course and speed suggest that some way or another, something is going to happen just because they continue to buy. And we'll see what the future holds.

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John Malone, Liberty Media Corporation - Chairman [26]
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The whole model is leveraged cash flow growth, whether it's Charter or Sirius. So it's most important to us, A, that we are principally invested in those kinds of predictable leverageable, tax-advantaged assets. And then number two, the things that are ancillary to those, it's important that we, from time to time, look at trading discounts or differentials and seek to eliminate or reduce those.

And then third of all, when we get into businesses that get large enough to stand on their own and really don't have a lot of synergies with the other businesses, then we figure out a way to tax efficiently monetize them, generally by giving them directly to our shareholders. Those of the core principles in all of these investment strategies.

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Unidentified Audience Member [27]
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Okay, thanks. And I have another separate question if you don't mind. So, John, this is actually for you. I know that we haven't covered this today, but I might as well use this opportunity to ask about your views on the content side of the business. I know you've talked about scale and we've seen your mix (multiple speakers)

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Greg Maffei, Liberty Media Corporation - President and CEO [28]
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Let's limit this to questions related to Liberty Media and other ones. We already kind of let you cheat on Charter, so we'll go over here with the blue sweater, blue shirt.

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Unidentified Audience Member [29]
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Thanks. I had two questions, one on that 25% of the market that Sirius isn't penetrating. You said it was sort of entry-level cars. Why don't they want that radio installed, the OEMs?

And second question, on the Braves --

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Greg Maffei, Liberty Media Corporation - President and CEO [30]
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Just to that one, it's not that they don't want -- they don't convert at a good enough rate that the investment for us in a chipset, in the marketing and the process doesn't convert at a high enough rate. Now, we've taken that from 65% to 75% because our conversion, we understand how the market -- and by the way, the cost of a SAC has come down. I think it was about $60 when we started, and now it's below $30 -- $60 when liberty started investing in this thing. It's now $30. So it's dropped in half. So that's allowed us to access lower into the marketplace and still find them to be attractive. But it's based on the fact that people who buy a $12,000 car are probably not going to subscribe to a $15 a month service.

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Unidentified Audience Member [31]
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Can that number get to $100 in 10 years?

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Greg Maffei, Liberty Media Corporation - President and CEO [32]
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If we give the chipsets away and they are free. But maybe Moore's law will bail us out here, but it's going to take a while.

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John Malone, Liberty Media Corporation - Chairman [33]
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That would be about a $200 million annual incremental investment with no projected return, but it is clear that that is a SIRI option, not the manufacturers' in terms of what level (multiple speakers)

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Greg Maffei, Liberty Media Corporation - President and CEO [34]
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Since we pay for it, they put it in everyone. God bless.

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Unidentified Audience Member [35]
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On the Braves, I don't know if there's ever been a sports team this public.

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Greg Maffei, Liberty Media Corporation - President and CEO [36]
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Several. The Cleveland Indians were a baseball team that's public but also the Celtics have been public. There have been other franchises. In a weird way, the Green Bay Packers are public. There's been various forms of that.

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Unidentified Audience Member [37]
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Is transparency an issue internally in allowing this group to fully analyze that?

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Greg Maffei, Liberty Media Corporation - President and CEO [38]
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Well, I can't comment on whether you are able to analyze it. (laughter) I can tell you that since it will have SEC statements, SEC filed statements and Qs, we're going to give you that which is required by the -- to be a public stock and fully confident that we'll be able to provide you what you need.

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John Malone, Liberty Media Corporation - Chairman [39]
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So don't underestimate. This is a pretty material real estate asset that is attached, which could get larger.

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John Malone, Liberty Media Corporation - Chairman [40]
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So don't underestimate. This is a pretty material real estate asset that is attached, which could get larger.

She's right there. Alexa with speed.

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Unidentified Audience Member [41]
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Given that Sirius is going to have to eventually spend some money on some new birds and given the state of the fixed satellite services industry, would it be possible, advantageous perhaps, to take advantage of some overcapacity, maybe by orbital slots or birds from an existing operator? Would that be more efficient for you guys? Would it even be technologically feasible?

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Greg Maffei, Liberty Media Corporation - President and CEO [42]
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Not probably slots. I think there's a lot of changing technology around what's happening in satellites. And we'll be able to take advantage of that and probably be able to -- Moore's law is sort of worked out for satellites too and there's people with ambitious plans. And our ability to probably for much lower cost per bit delivered on the next generation of satellites is pretty good. That having been said, we are several years out. And these birds are -- they are not nothing but they are measured in small hundreds of millions of dollars, and against the cash flow of Sirius, they are not enormous against the total totality.

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Unidentified Audience Member [43]
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And furthermore on Sirius, flyball. Would these -- would this asset be valuable potentially as a quintuple play for a telecommunications provider in order to reduce churn, fund a dividend?

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Greg Maffei, Liberty Media Corporation - President and CEO [44]
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You know, we haven't even got to Quad yet but I like your thinking. You know, I think you could make that case. And I think you could make -- it's an incremental service that can be bundled. It's a little different in the way that it's marketed. But you're talking about a $15 service versus, if you are selling a $150 bundle of a lot of other services, your ability to touch. So think about how it gets tacked on. You have to be efficient, etc. We've had a very efficient model, not low-cost but efficient in terms of its delivery with what we spend with the OEMs to put those chipsets in and have them push it and the rev share we give them, which is really all marketing money, right? Whether that's going to convert in the future.

One of the open questions is, is that spectrum -- does that align too when you think about how all of these pieces fit. If you are offering those services, how does that incremental spectrum that we could free up or that we could use, do other things with, is that interesting.

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Unidentified Audience Member [45]
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Would it be feasible for the existing system to use a different pipe?

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Greg Maffei, Liberty Media Corporation - President and CEO [46]
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Sure. We stream it now. I think, over time, you'll see our differentiation, the fact that we have the satellite, be very powerful. But the reality is I think you'll see us become far more platform-independent as well. We already have several million streaming customers. The idea that those grow over time in various forms that were on other kinds of platforms seems very logical.

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Unidentified Audience Member [47]
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And as a result then, would you say that the WCS band, which Sirius splits in half, would that become substantially more valuable, more usable, if SIRI were to move its spectrum off that or --?

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Greg Maffei, Liberty Media Corporation - President and CEO [48]
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I think those are all true statements.

Up here.

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Unidentified Audience Member [49]
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Okay. Thank you very much.

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Unidentified Audience Member [50]
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A question about Liberty Media going forward. What do you see as the opportunity for Liberty Media now that it's a much smaller company? What excites you in terms of investing in the media space to date looking out three, five years?

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John Malone, Liberty Media Corporation - Chairman [51]
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You are talking about the tracker that we are going to call the Liberty Media Tracker?

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Greg Maffei, Liberty Media Corporation - President and CEO [52]
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Just that one tracker, or you mean the totality?

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Unidentified Audience Member [53]
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Well, I really would like to know your thoughts about what excites you in terms of opportunities in the media space today, and if one of the trackers is appropriate for that or just really where you are thinking about creating value three to five years out. What other opportunities do you see?

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John Malone, Liberty Media Corporation - Chairman [54]
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Well, obviously, the vision that we're talking about of two trackers, one for the Braves, one for a collection of assets of which the largest is Live and then the one that specifically targets Sirius. That's what's in that entity today. You know, probably, in the short run, winning the appeal or settling with Vivendi and getting a big check would be very nice. I really don't want to go back to federal district court.

But in terms of long-term, where do you find opportunity in the media space, it's probably going to be in consolidation, in scale. And it remains to be seen whether Liberty, that entity, can find opportunities to invest or acquire that have some synergies, that are within our traditional model.

I mean we had no idea Sirius XM was going to come available to us until it did. So, to a large degree, a reason to be in business and have some flexibility is to take advantage of things that come along that you didn't anticipate. So, I would say, right today, do I see something that we could go leverage up and put a lot of money into? We are kicking the tires all the time.

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Greg Maffei, Liberty Media Corporation - President and CEO [55]
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And I would -- you know I would echo John. It's a lot easier for us to put incremental money into something we already have or that's adjacent to it and there are a bunch of synergies and bring scale, which is the usual benefit of putting companies together, not the only but the usual, some scale and help fund incremental acquisitions. You know that is probably the easiest.

Entering de novo the way we did in Charter, pretty rare you find that opportunity to buy a stake the way we did with enough influence to have power, not pay too large a premium and still see a path. And we saw several ways to get paid at Charter, right? We saw the way of growth. We saw the way of improved operations upgrade and we also saw the path for potential for consolidation. You know, trying to create optionality with several ways to get paid is a useful thing.

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John Malone, Liberty Media Corporation - Chairman [56]
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You know, right at the moment, of course we are limited by contract from increasing our stake in Live Nation. So Live Nation is a logical place for the Liberty Company to put incremental capital as Live Nation goes out and acquires some of these incremental assets in which the marginal returns are very high. So we've done that in the past. We've helped Live capitalize on some of their acquisitions. That probably is where we would go going forward. In order to change the contractual relationship is a big negotiation, which is why Greg gets the big money. But we are enthusiastic about Live and its growth potential and it's incremental return on M&A activity. So --.

A question in the way back there. Barton?

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Barton Crockett, FBR Capital Markets & Co. - Analyst [57]
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It's Barton Crockett from FBR. Just following up on that last question, there's been a lot of speculation from people I talk to about why Liberty Media could be used as a vehicle to get into content consolidation, looking at Malone, your investments, your allied companies investments in things like Lionsgate. It sounds like you don't want to go there but I just want to clarify that. Are you kind of ring-fencing Liberty Media out of content investments and that comes through other vehicles?

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John Malone, Liberty Media Corporation - Chairman [58]
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The store is always open.

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Barton Crockett, FBR Capital Markets & Co. - Analyst [59]
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Okay.

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John Malone, Liberty Media Corporation - Chairman [60]
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Greg's phone number is published. You've got good ideas? Call him up.

The answer is no. We don't rule anything out. We look at everything that fits within our model, and it looks like it would preserve -- provide good equity returns for the Company.

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Greg Maffei, Liberty Media Corporation - President and CEO [61]
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Well, you know, in the environment that we are in, low interest rate environment, our model, which John I think rightly described -- we like subscription businesses with certainty. We like the ability to put incremental financial leverage on them, look for consolidation plays. We've had some pretty (expletive deleted) good deals like Live Nation and TripAdvisor which don't fit those models obviously. And so you adapt to what's out there, and you try and find a good opportunity.

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Barton Crockett, FBR Capital Markets & Co. - Analyst [62]
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Thank you.

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Greg Maffei, Liberty Media Corporation - President and CEO [63]
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James?

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James Ratcliffe, Buckingham Research Group - Analyst [64]
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(inaudible - microphone inaccessible)

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Greg Maffei, Liberty Media Corporation - President and CEO [65]
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So, if I could rephrase your question, why do we track some assets and why do we spin others? There are various cases. For example, on the venture side, we don't want to spin away those bonds even if we necessarily could because we like to have the high cash flow, high income generating QVC tied to the green assets to provide shelter, and that's a way to generate capital. There's an example of one why you wouldn't want to spin it.

In other cases where you don't know if you could be a buyer or a seller as time changes on, a hard spin like in the case of CommerceHub might create additional flexibility. We are not really in the mode of saying we want to sell Sirius XM, so the spin seems less relevant today than doing a tracker as an example. I don't know what else you'd add, John.

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John Malone, Liberty Media Corporation - Chairman [66]
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I mean, generally speaking, it's been the perception that you track things because you are not ready to spin them. And I would say that's normally the case, that they are not ready for prime time, but they are difficult to value and in a conglomerate sense and you are trading at a discount on the combination because people can't evaluate these assets separately. So, in effect, we're forcing the market with this tracker to separate the value of Sirius, of the Sirius holdings from Live Nation, miscellaneous assets, the Vivendi lawsuit, and the Braves. We're forcing that. The market will, because of the way we distribute these equity participations, will separate these into three separate equity valuations. And then we can look at them and decide if those valuations are appropriate. I mean, obviously, if some are substantially undervalued, that creates an opportunity to deal with that under-valuation.

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Greg Maffei, Liberty Media Corporation - President and CEO [67]
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We bought back I think 53% -- 52% or 53% of Liberty Media from the public and we bought it back generally at substantial discounts to the NAVs. We've also had the benefit of the NAVs rising, so we can sit there and weight, okay, if you want to take your pick on which of the three you want to be in and if the market doesn't buy our valuations, we get to evaluate and make that decision in a much more precise manner.

So other questions? How about upfront here.

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Unidentified Audience Member [68]
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Of all the assets you've got today, which are the most disappointing in comparing based on your initial expectations?

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Greg Maffei, Liberty Media Corporation - President and CEO [69]
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You saw those presentations. Did anything look disappointing or concerning to you? They are all beautiful children. This is Lake Wobegon.

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John Malone, Liberty Media Corporation - Chairman [70]
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Of anything of size, probably Barnes & Noble.

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Greg Maffei, Liberty Media Corporation - President and CEO [71]
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I'm sure land is going to -- I had drinks with Rick yesterday. I'm sure he will remember.

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John Malone, Liberty Media Corporation - Chairman [72]
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Even then, we ended up, because of the structure that we went in on, we ended up with a pretty decent return. So, there are a few little venture capital things that we have tried that have been disappointing, but I don't think anything that moves the needle. I mean the goal is to make all of your mistakes little ones and all your successes big ones.

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Greg Maffei, Liberty Media Corporation - President and CEO [73]
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We've had -- and we've outlined some of that in our report. We've had a ton of mistakes. Everything we tied into TruePosition to try and extend it was a poop. We went into the movie business at Starz, disaster. What else did we do that was really bad? Those are two --

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John Malone, Liberty Media Corporation - Chairman [74]
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What was the one that -- there was the startup -- social network, cheap --?

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Greg Maffei, Liberty Media Corporation - President and CEO [75]
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Oh yes we did -- we lost small -- to John's point, but Lockerz we got wiped out. So, but those have been small. But the worst thing we did was entering the movie business. That probably lost more money than anything else we did.

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John Malone, Liberty Media Corporation - Chairman [76]
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I've done that three times. (laughter) Always with the same result.

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Greg Maffei, Liberty Media Corporation - President and CEO [77]
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That's good, as John described, that's a good tax loss generator. That's probably, if you look at sins a rather commission rather than omission, that's probably the single worst thing we did since I've been at Liberty. I thought you were asking about the current portfolio and now we've weaned all the losers out. Anyway.

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John Malone, Liberty Media Corporation - Chairman [78]
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Normally, if we stay pretty much in the space that we are comfortable with and you don't get overextended, you can take advantage of cycles. You know, in fact, you make, generally in a long time frame, you make most of your money in the down cycle, not in the up cycle.

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Unidentified Audience Member [79]
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(inaudible - microphone inaccessible)

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Greg Maffei, Liberty Media Corporation - President and CEO [80]
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Mistakes of omission?

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John Malone, Liberty Media Corporation - Chairman [81]
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Big.

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Greg Maffei, Liberty Media Corporation - President and CEO [82]
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The big mistakes? We went after -- we were going to buy all of Sirius XM at one point when we could -- we were going to go, sorry from 40% to 51% or whatever -- 50%, whatever we go to, at $1.25. John, I'm going to throw him under the bus a little. John went out and said some really positive things about Sirius XM. The stock ran to $1.50 and we refused. We were like it's too much. We're not going to buy any more. Well, now here at $4.00, we should have been buying it. We should have had the nerve at the $0.25. That was pretty silly.

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John Malone, Liberty Media Corporation - Chairman [83]
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I would say the biggest one in the last few years was not going hostile on Netflix when we identified it as being very undervalued, and didn't Carl Icahn?

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Greg Maffei, Liberty Media Corporation - President and CEO [84]
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And the reason we didn't go hostile on Netflix or go -- hostile is too strong -- go buy a big hunk of Netflix is because we had Starz at the time and the cable guys hated Netflix and they would have whipped us at Starz. So we figured rather than throw Starz under the bus, we held off from buying Netflix. We could have flushed Starz, with all due respect, than we would have made on Netflix. (laughter).

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John Malone, Liberty Media Corporation - Chairman [85]
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We actually spun it off but we didn't do it early enough to be able to go with no repercussions. But I did try very hard to talk DirecTV into buying Netflix about, what, two years ago?

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Greg Maffei, Liberty Media Corporation - President and CEO [86]
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Probably more than that, John. Three or four years.

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John Malone, Liberty Media Corporation - Chairman [87]
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Three or four years.

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Unidentified Audience Member [88]
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(inaudible - microphone inaccessible)

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Greg Maffei, Liberty Media Corporation - President and CEO [89]
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Well, I'll let Michael add in as well but -- or my perspective is the flywheel there has gone very well. You have seen good concert -- good ticket growth lead to greater revenue growth, lead to greater EBITDA growth and greater, even greater free cash flow growth. And they significantly actually delivered the business and largely opened up opportunities to put more capital into extending the business with acquisitions. They've done some of those but there are clearly more on the horizon. Mike, do you want to add to that?

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Michael Rapino, Live Nation Entertainment - President, CEO and Director [90]
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Thank you. Yes, as I mentioned up there, we think it's a global race. There's a lot of great assets on a global basis that have a high-margin, less competitive set. So we think, whether it's a good concert promoter or a good ticketing platform in Europe, South America, Asia, lots of opportunities to continue to take our goal of -- we had 500 million transactions this year. We did 25,000 shows. We think we can double that business over the next while through acquisitions and organic. So when that flywheel grows, tickets sell. Ticket fees, on-site and advertising excel. So that will be most of our opportunity in terms of CapEx.

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Greg Maffei, Liberty Media Corporation - President and CEO [91]
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Great. Last question here.

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Unidentified Audience Member [92]
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Maybe you will take one more, but, John, because it was a $2 billion acquisition, I don't think anyone's asked your opinion of the Zulily acquisition. I was wondering if you would share that with us.

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John Malone, Liberty Media Corporation - Chairman [93]
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Well, in all honesty, I didn't know a lot about it. The guys came in with a model, with synergies and so on, and I just looked Mike George square in the eyes. I said you've done a great job for a lot of years. Is this one that you believe in? He said, yes, and I said that's fine with me.

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Greg Maffei, Liberty Media Corporation - President and CEO [94]
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On that note, thank you very much for your interest in Liberty!

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