MCNBRIEFS

Liberty to Spin Starz

DENVER — Liberty Media has set the stage
for a late 2012
spinoff of its
premium channel
Starz into
its own separate,
publicly
traded stock.

According to Liberty, Starz would be spun
into a separate company along with $1.5 billion
in debt and an undetermined amount of cash.
Shares of that entity would be distributed to existing
Liberty Media shareholders in a tax-free
distribution.

Liberty Media would include the Atlanta Braves
Major League Baseball team; location technology
company TruePosition; interests in Sirius XM,
Live Nation and Barnes & Noble; and minority investments
in Time Warner Inc. and Viacom.

With the spin, Starz would come full circle.
Originally part of Liberty Media, Starz was spun
as a tracking stock in 2010 and reabsorbed into
Liberty Media, along with Liberty Capital, in 2011
in a move that eff ectively transformed Liberty Interactive
into an asset-backed security.

With the completion of the latest deal, both
Starz and Liberty Media will become assetbacked
stocks.

Avengers Assemble!

BURBANK, CALIF. — The Walt Disney Co. reported
a strong fiscal third quarter, fueled by
blockbuster films such as The Avengers.

Overall revenue rose 4% to $11.1 billion, segment
operating income grew 18%, to 3.2 billion, and net
income was up a strong 24%, to $1.8 billion in the
period. Almost all of that growth
was driven by its movie studio,
which reported a sixfold
increase in operating
income to $313 million
while revenue remained
flat at $1.6 billion.

Media networks revenue
increased 3%, to $5.1
billion, and segment operating
income was up 2%, to $2.1
billion. At its cable networks, including sports juggernaut
ESPN, revenue rose 3%, to $3.6 billion, but
segment operating income was up just 1%, to $1.9
billion. At its networks division — including ABC
and its owned-and-operated television stations —
revenue increased 3% and segment operating income
rose 7% to $268 million.

In a statement, Disney said strong revenue
gains at its Disney Channels were offset by a decline
at ESPN, driven by lower recognition of
deferred affiliate fees related to annual programming
commitments.