John Malone will give up a big chunk of DirecTV stock with bigger voting power and convert it to regular shares with a smaller voting stake, plus he will resign as the satellite TV giant's chairman and leave the board.
The two parties unveiled the transaction, which will cut the DirecTV voting stake held by Malone and his family from 24.3 percent to 3 percent and is expected to be completed in the coming months, late Tuesday.
It allows the Malones to continue to benefit from any stock upside but eliminates DirecTV's dual voting share structure. Importantly, it is expected to satisfy a condition imposed by the FCC when Malone's Liberty Media acquired its DirecTV stake from News Corp. in February 2008.
Read more from the Hollywood Reporter.
