Liberty Media Buying Out LSAT Holders

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Liberty Media Corp. said last week that it had reached a definitive agreement to acquire the remaining 13% of Liberty Satellite & Technology Inc. it does not already own for about $21.7 million.

According to the deal, about 6.6 million common shares of Liberty Satellite not owned by Liberty Media would be converted into the right to receive 0.275 of a share of Liberty Media Series A common stock.

Based on Liberty Media's closing price of $12.01 on Aug. 27, the deal values Liberty Satellite at about $3.30 per share.

Liberty Satellite's main asset is OnCommand Corp., a provider of in-room entertainment and broadband services for the lodging industry. Liberty Satellite also holds stakes in Wildblue Communications, Astrolink International, and Sky Latin America.

Morgan Stanley & Co. served as financial adviser to Liberty Satellite's independent directors.

The deal still must be approved by Liberty Satellite's shareholders.

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