Liberty Media splits off Liberty Entertainment; LEI, DirecTV deal done

By Lisa Kerner

Charlotte, N.C., Nov. 20 - Liberty Media Corp. announced the completion of its splitoff of Liberty Entertainment, Inc. and the business combination between DirecTV Group, Inc. and LEI on Thursday.

According to a Liberty Media news release, it redeemed 90% of the outstanding shares of Liberty Entertainment common stock in exchange for all the outstanding shares of LEI common stock.

Liberty Media redeemed 0.9 of each outstanding share of Liberty Entertainment common stock for 0.9 of a share of the corresponding series of common stock of LEI.

LEI holds Liberty Media's 57% interest in DirecTV, a 100% interest in Liberty Sports Holdings, LLC, a 65% interest in Game Show Network, LLC and approximately $120 million in cash and cash equivalents and is the obligor on approximately $2 billion of debt, the release said.

The Liberty Entertainment shares remaining with Liberty Media have been redesignated Liberty Starz.

The series A and series B Liberty Starz common stock began regular-way trading on Friday under the symbols "LSTZA" and "LSTZB," respectively.

LEI and DirecTV became wholly owned subsidiaries of a new public holding company named DirecTV ("Holdings").

In the transaction:

• Each share of LEI series A common stock was exchanged for 1.1113 shares of Holdings class A common stock;

• Each share of LEI series B common stock - other than those held by John C. Malone, chairman of the boards of Liberty Media, LEI and DirecTV - was exchanged for 1.1113 shares of Holdings class A common stock; and

• Each share of DirecTV common stock was exchanged for one share of Holdings class A common stock.

Liberty Media is an Englewood, Colo., entertainment company.

DirecTV is an El Segundo, Calif., provider of digital multichannel television entertainment.

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