Liberty Media Registers Shares to Split-Off Liberty Capital and Liberty Starz

Liberty Media Corp. currently has three sets of tracking stock outstanding, each tied to the economic performance of a particular business or "group" rather than the economic performance of the company as a whole.  The Liberty Interactive tracking stock, outstanding since May 2006, reflects assets and businesses engaged in video and on-line commerce, including subsidiary QVC Inc. and interests in Expedia Inc.  The holders of Liberty Interactive common stock are not being asked to vote on the split-off proposals at a special meeting of shareholders to be held in 2011.  

The proposed split-off will be effected by the redemption of all the outstanding shares of Liberty Capital tracking stock and Liberty Starz tracking stock in exchange for shares that are being registered on Form S-4 filed 12/16/10 by the newly-formed Liberty Splitco, Inc. (file no. 333-171201).  Splitco will hold substantially all the assets and be subject to substantially all the liabilities currently attributed to the Liberty Capital and Liberty Starz tracking stock groups of Liberty Media Corp.  If the split-off is completed, Liberty Media will have a pure play, asset-backed stock.

The assets and businesses attributed to the Liberty Capital group include controlling interests in Atlanta National League Baseball Club, Inc. and TruePosition, Inc., as well as minority investments in Sirius XM Radio Inc., Live Nation Entertainment, Inc., Time Warner Inc., Time Warner Cable Inc., and Sprint Nextel Corp.  Currently, the Starz Group includes Liberty Media's interests in Starz Entertainment, LLC, Starz Media, LLC and Liberty Sports Interactive, Inc. 

Liberty Capital tracking stock and Liberty Starz tracking stock (formerly Liberty Entertainment tracking stock) have been outstanding since March 2008 when each share of the previous Liberty Capital tracking stock was reclassified into one share of the same series of new Liberty Capital and four shares of the same series of Liberty Entertainment (see SEC file no. 333-145936).  On November 19, 2009, Liberty Media completed the split off of its Liberty Entertainment, Inc. ("LEI") subsidiary.  The split-off was accomplished by a redemption of 90% of the outstanding shares of Liberty Entertainment common stock in exchange for all of the outstanding shares of common stock of LEI.  LEI had been attributed to the Entertainment Group.  Subsequent to the split-off, the Entertainment Group was renamed the Starz Group (see file no. 333-158795).