Liberty Media Corp will give all its directly held internet content and interactive television assets – including its wholly owned subsidiary Liberty Digital LLC – to TCI Music Inc, in exchange for an 85% equity interest and 99% voting interest in TCI Music. Properties to be handed over to TCI Music include stakes in Priceline.com, iVillage, Sportsline USA and Drugstore.com. Liberty’s stake in TCI Music is now estimated to be worth around $4.11bn.
Liberty, which already manages TCI Music, explains that its new policy is to use TCI Music as its primary vehicle for interactive programming and content – ie, as its dumping ground for as-yet-unprofitable net-related ventures. TCI Music shareholders will vote on the proposal at a September 8 1999 meeting. TCI Music is no stranger to content-for-equity deals. It recently acquired a 10% stake in MTV Networks’ online music ventures in exchange for its own web properties, SonicNet and The Box.
