Liberty Media to Buy Stake in TCI Satellite

AT&T; Corp.’s Liberty Media Group, a cable-TV programming company run by John Malone, agreed to buy a $300-million stake in TCI Satellite Entertainment Inc., TCI Satellite said. Liberty Media will receive $150 million in TCI Satellite Series A preferred stock and $150 million in Series B convertible preferred stock with voting rights. In exchange, TCI Satellite said it will receive “Liberty Media’s economic interest in certain shares” of Sprint Corp.’s wireless unit, Sprint PCS. It gave no other details of that transaction. The two companies will also form a joint venture, 90% owned by Liberty Media, to own stakes in companies that distribute Internet data by satellite. The move allows Liberty Media to consolidate its satellite business into one unit and gives Englewood, Colo.-based TCI Satellite the cash to pursue new opportunities, TCI Satellite said. The transaction, which needs regulatory approval, is expected to close in the first quarter.