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Liberty Media to Buy IDT Entertainment

Posted on: Tuesday, 16 May 2006, 18:07 CDT

NEW YORK - Liberty Media Corp., parent of QVC home shopping network and online travel site Expedia.com, said Tuesday it plans to buy IDT Entertainment from IDT Corp., a telecommunications services provider.

Liberty said the business will become part of its Starz Entertainment Group, broadening the unit's animated and live action programming for domestic and international distribution in broadcast syndication, TV and DVD.

Starz Entertainment is a premium movie service, operating 16 movie channels including its flagship brand Starz and Encore. IDT Entertainment develops, acquires, produces and distributes animated and other productions.

Under the deal, Englewood, Colo.-based Liberty Media will pay $186 million in cash and all of its equity interest in IDT and its subsidiaries, including 17.2 million shares of Class B common stock and its 5 percent stake in IDT Telecom.

Liberty will also assume IDT Entertainment's debt, which was not disclosed.

The agreement entitles Newark, N.J.-based IDT to receive additional compensation from Liberty based on the appreciation of its entertainment business over the five years after the sale closes.

The deal is expected to be completed within three months, subject to customary conditions and regulatory approval.

In its fiscal second quarter, IDT reported revenue of $48.4 million for its entertainment division, accounting for about 8 percent of IDT's total revenue.

IDT shares jumped $1.60, or 14 percent, to close at $12.75 on the New York Stock Exchange. Shares of Liberty Media rose 35 cents, or 1.9 percent, to finish at $18.50 on the Nasdaq Stock Market.

Source: Associated Press/AP Online

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