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Liberty closes Digital buy; invests $30 M in IDT

Thu, 03/14/2002 - 7:00pm
Anne Kerven

Liberty Media completed the short-form merger with Liberty Digital it announced in October, in a stock transaction that nets Liberty Media 100 percent of the digital company.

Liberty also invested $30 million in IDT Corp. subsidiary IDT Telecom Inc., giving it a 4.76 percent equity stake in IDT Telecom. IDT Corp. owns the rest.

Under the acquisition, Liberty Digital stockholders get 0.25 shares of Liberty Media Series A common stock for every share of Liberty Digital's Series A common stock they hold. Liberty Media says it will issue about 5 million shares of Its stock to Digital shareholders. Liberty Media already owns all of Digital's Series B common stock.

A short-form merger means the move doesn't need the approval of Liberty Digital's board or stockholders

The digital unit brings the Media parent a 56 percent ownership in DMX Music Inc. and 50 percent of The Game Show Network.

Liberty purchased the unit to give it more resources for its strategic plan, says Media President and CEO Robert Bennett.

Liberty Media also invested $30 million in IDT Corp.'s telecom unit. IDT says the funds till take it into the unit's "next chapter of building value," including expanding operations in Europe, South America and Asia.

IDT recently purchased Winstar Communications, Net2Phone and Talk America Radio Network.

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