Liberty Media Corp. said Wednesday it will create a third tracking stock for holdings that will include DirecTV, Starz Entertainment and WildBlue Communications.

The Douglas County-based company, which is controlled by media magnate John Malone, also announced so-so results for its second quarter, with weaknesses particularly in the QVC shopping channel's business in Japan and Germany.

Greg Maffei, Liberty Media chief executive officer, told analysts during a conference call that the new Liberty Entertainment tracking stock is a further effort to simplify the company's structure.

Liberty recently agreed to swap a stake in Rupert Murdoch's News Corp. for a nearly 40 percent controlling interest in the satellite-TV company DirecTV. The deal is expected to close by year-end.

The new Liberty Entertainment tracking stock also will include Starz and WildBlue, which have been part of the Liberty Capital tracking stock.

Liberty Capital will retain minority holdings in other businesses, while Liberty Interactive will remain unchanged, continuing to include interests in QVC, Expedia and other Internet businesses.

Janco Partners analyst April Horace said the grouping makes sense.

"It allows you to invest in what you're interested in but also take advantage of the tax-sharing" agreements made by Malone.

Liberty Capital shares were up 3.2 percent to $115.27 Wednesday, despite the fact that second- quarter revenues declined from $264 million last year to $254 million. Operating income decreased from $44 million to $42 million.

Liberty Interactive shares slid 1.9 percent to $19.82 on news that second-quarter revenues increased only 4 percent to $1.69 billion.

While concerned about the international results, Horace said she was encouraged to hear Malone is thinking about a long-term strategy for DirecTV.

Maffei noted that Liberty has had a "good dialogue" with DirecTV and Sprint about potential wireless broadband ventures, especially in mobile television/video.

smithje@RockyMountainNews.com or 303-954-5155