Worries Over Sports Assets Derail Liberty Media Purchase of Ascent

Ascent Entertainment Group Inc. said Liberty Media Group, AT&T; Corp.’s cable-television programming arm, terminated its $572-million purchase of Ascent amid fears Ascent wouldn’t succeed in selling its sports assets.

Ascent also threatened to cancel the planned $461-million sale of the two sports teams and an arena to billionaire Donald Sturm if he doesn’t reach an agreement with the city of Denver by today at 5 p.m. Sturm has balked at demands the teams remain in Denver for 25 years and sought a lower price.

Liberty Chairman John Malone wanted Ascent for the pay-per-view entertainment and Internet-access services it provides to hotel guests through On Command Corp. He didn’t want the sports assets, which include the National Basketball Assn.’s Denver Nuggets, the National Hockey League’s Colorado Avalanche and the Pepsi Center arena.

“This is obviously a disappointment for Ascent shareholders, but the inherent value of the assets is still there, and it’s just a matter of time before a sale happens,” said Lawrence Creatura, a portfolio manager at Clover Capital Management Inc., which owned 2.9% of Ascent’s shares Sept. 30.

Ascent could be forced to seek new buyers for both businesses, though analysts, shareholders and the company itself said Liberty may renew its bid for Ascent if the sports teams are sold.

“It was a friendly cancellation,” Ascent spokesman Charles Russell said of Liberty’s decision to end the agreement. “It is very likely that Liberty will come back with another offer.”

Liberty had the right to cancel the acquisition, which assumed a certain amount of cash for the sports teams, after Nov. 1.