Liberty Buys Into Two Postproduction Cos.8/08/1999 8:00 PM Eastern
Denver -- Liberty Media Group announced that it will
purchase a controlling interest in two postproduction film and video companies for an
estimated $162.3 million, furthering its strategy to gain inroads in that portion of the
Liberty will exchange one share of its stock for every 2.5
shares of The Todd-AO Corp., a Los Angeles-based postproduction company. Liberty will
issue about 2.5 million of its shares in the deal, and it will control 57 percent of
Todd-AO's equity, gaining 82 percent voting control of the company. The deal is estimated
to be worth about $92.5 million.
Todd-AO provides sound services including music recording,
sound editing, narration and dialogue and rerecording, in addition to visual effects,
graphic services, videotape editing and mastering of videotapes and DVDs, to most of the
major film-production studios.
In addition, Liberty will acquire 55 percent equity and 92
percent voting control in Soundelux Entertainment Group, a privately held provider of
location-based entertainment technology and postproduction services, in exchange for 1.9
million shares of Liberty stock. Based on Liberty's Aug. 2 closing price of $37 per share,
the deal would be worth $70.3 million.
"We believe these businesses can provide valuable services to our existing
businesses, and they will play an important role in providing a new generation of services
focused on the evolving interactive-video market," Liberty president and CEO Robert
Bennett said in a prepared statement.