Liberty Creates Tracking Stock

Liberty Media Corp. said Wednesday that it was focusing on the future of its interactive business, hiring former Oracle Corp. finance chief Gregory B. Maffei to head the company and creating a tracking stock for home shopping network QVC and other assets. It also said it swung to a third-quarter loss because of higher expenses.

Liberty Chairman and Chief Executive John C. Malone said the tracking stock would encompass as much as 85% of the company’s equity assets and could lead to a spinoff.

“This creation of Liberty Interactive clearly signals a desire long-term for ultimate separation,” Malone said.

If a spinoff occurred, the remaining assets -- including Liberty’s 18% stake in Rupert Murdoch’s News Corp. and cable network owner Starz Entertainment Group -- would be grouped in a company called Liberty Capital.

Maffei, who resigned as Oracle’s chief financial officer last week after four months on the job, is expected to take over as CEO of Liberty in the second quarter of 2006, replacing Malone. Malone will remain as chairman.

Maffei, 45, said he would try to help Liberty leverage its operating assets with interactive businesses as well as develop tax efficiencies. He will remain with Redwood City, Calif.-based Oracle until Nov. 15, when company co-President Safra Catz will assume finance chief duties.

For the third quarter, Liberty reported a loss of $94 million, or 3 cents a share, contrasted with a profit of $372 million, or 13 cents, a year earlier.

Revenue totaled $1.85 billion, up 13% on the strength of QVC’s domestic and international sales. Starz, which operates a premium cable movie channel and Internet movie rental site, reported flat revenue.

Analysts polled by Thomson Financial expected break-even per-share results on revenue of $1.86 billion.

Englewood, Colo.-based Liberty’s Class A shares rose 7 cents to $8.02.