Liberty Satellite to Buy Astrolink Assets

Liberty Satellite & Technology Inc., controlled by John Malone’s Liberty Media Corp., plans to acquire the stakes of its partners in the failed satellite venture Astrolink International.

Letters of intent have been signed with Lockheed Martin Corp., TRW Inc. and Italy’s Telecom Italia to buy Astrolink’s assets, the company said. Liberty Satellite owns about 31.5% of Astrolink. Terms weren’t disclosed.

Liberty Media will make a “capital contribution” to Liberty Satellite in exchange for shares of the unit’s Series B stock if the sale is completed.

The $3.7-billion Astrolink project collapsed after the companies failed to attract new investors and declined to provide any more financing for the venture. Last year, Lockheed took a $400-million write-off of its investment in Astrolink, while TRW had a $157-million loss.

Liberty Satellite shares fell 38cents, or 10%, to $3.50 in over-the-counter trading.