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Hoover's Online Report BuilderLiberty Media Corporation (NYSE: L)
Copyright 2004, Hoover's, Inc.
Table of ContentsThe Basics...............................................................................................................................................................................1
Key Numbers.............................................................................................................................................................1Financial Overview....................................................................................................................................................1Officers & Employees................................................................................................................................................2Board Members..........................................................................................................................................................2Industry Information..................................................................................................................................................2SIC Codes...................................................................................................................................................................3NAICS Codes.............................................................................................................................................................3Top Competitors.........................................................................................................................................................3All Competitors..........................................................................................................................................................3Rankings.....................................................................................................................................................................3Subsidiaries/Affiliates Covered By Hoover's Online.................................................................................................3
Biographies............................................................................................................................................................................5 John C. Malone, Age 63............................................................................................................................................5 Robert R. Bennett, Age 46........................................................................................................................................5 Gary S. Howard, Age 53...........................................................................................................................................6 Elizabeth M. Markowski...........................................................................................................................................7 Michael P. Zeisser.....................................................................................................................................................7 Christopher W. (Chris) Shean, Age 38.....................................................................................................................7 Anthony G. (Tony) Werner, Age 47.........................................................................................................................8 David J. A. Flowers, Age 49.....................................................................................................................................8 Charles Y. Tanabe, Age 52.......................................................................................................................................8 Albert Rosenthaler....................................................................................................................................................8 Miranda Curtis..........................................................................................................................................................9 John A. Orr................................................................................................................................................................9 Michael Erickson......................................................................................................................................................9 Peter C. Boylan III, Age 40.....................................................................................................................................10 Donne F. Fisher, Age 66.........................................................................................................................................10 Paul A. Gould, Age 59............................................................................................................................................10 David E. Rapley, Age 62.........................................................................................................................................11 Larry Romrell, Age 64............................................................................................................................................11
Overview..............................................................................................................................................................................12
History..................................................................................................................................................................................13
Products/Operations...........................................................................................................................................................15
Other Resources Available On Hoover's Online..............................................................................................................17Other Resources.......................................................................................................................................................17Related Products From Our Trusted Partners..........................................................................................................17
Annual Financials................................................................................................................................................................18
Quarterly Financials...........................................................................................................................................................20
Report Builder − Liberty Media Corporation − Hoover's Online
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Table of ContentsHistorical Financials & Employees....................................................................................................................................23
Market Data.........................................................................................................................................................................25
Comparison Data.................................................................................................................................................................26
Competitive Landscape.......................................................................................................................................................28
Report Builder − Liberty Media Corporation − Hoover's Online
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The Basics
12300 Liberty Blvd.Englewood, CO 80112 (Map)http://www.libertymedia.com
Phone: 720−875−5400Fax: 720−875−7469
Liberty Media takes its freedom to acquire other businesses seriously. Liberty has stakes in a wide variety of cablechannels such as the Discovery Channel and E!, and it owns 98% of home shopping network QVC. In addition, LibertyMedia is one of the largest shareholders of News Corp. (17%). The company was a subsidiary of AT&T, which hadacquired former parent Tele−Communications, Inc. (TCI) in 1999. In 2001 AT&T spun off Liberty Media as part of thephone giant's plan to split its empire into several companies. Liberty Media plans a spinoff of its own by separating itsinternational assets into a new company. The firm is chaired by former TCI head John Malone, who now owns a majorityof its stock.
Key Numbers
Company Type Public (NYSE: L)
Fiscal Year−End December
2003 Sales (mil.) $4,028.0
1−Year Sales Growth 93.3%
2003 Net Income (mil.) ($1,222.0)
2003 Employees 17,670
1−Year Employee Growth 136.9%
Auditor KPMG LLP
Financial Overview
Last Close 16−Mar−2004 $11.28
52−Week High $12.45
52−Week Low $9.52
Basic EPS ($0.44)
Price/Earnings Ratio −−
Current Ratio 2.26
R&D Expenditures (mil.) −−
Ad Expenditures (mil.) 26.00
% Owned by Institutions 71.90%
Report Builder − Liberty Media Corporation − Hoover's Online 1
Officers & Employees
Title Name Age Salary Bonus
Chairman John C. Malone 63
President, CEO, and Director Robert R. Bennett 46 $1,000,000
EVP, COO, and Director (Retiring
in February 2004)Gary S. Howard 53 $787,500
SVP Elizabeth M. Markowski $600,000
SVP Michael P. Zeisser
SVP and Controller Christopher W. (Chris) Shean 38
SVP and CTO Anthony G. (Tony) Werner 47
SVP and Treasurer David J. A. Flowers 49 $323,077
SVP, General Counsel, andSecretary
Charles Y. Tanabe 52 $600,000
SVP Tax Strategy, Planning andCompliance
Albert Rosenthaler
SVP; President, Liberty MediaInternational
Miranda Curtis
VP John A. Orr
VP Investor and Media Relations Michael Erickson
President and CEO, LibertyBroadband Interactive Television
Peter C. Boylan III 40
Board Members
Title Name Age
Chairman John C. Malone 63
President, CEO, and Director Robert R. Bennett 46
EVP, COO, and Director Gary S. Howard 53
Director Donne F. Fisher 66
Director Paul A. Gould 59
Director David E. Rapley 62
Director Larry Romrell 64
Industry Information
MediaTelevision
Television Cable, Pay & Broadcast Networks (primary)◊ ♦
•
Report Builder − Liberty Media Corporation − Hoover's Online 2
SIC Codes
4833 Television broadcasting stations
4841 Cable and other pay TV services
NAICS Codes
515120 Television Broadcasting
515210 Cable and Other Subscription Programming
Top Competitors
Hearst• Rainbow Media• Viacom•
All Competitors
Bertelsmann• CANAL+• Comcast• Cox Communications• E. W. Scripps• Fox Entertainment• Hearst• NBC• Oxygen Media• ProSiebenSat• Rainbow Media• Time Warner• Turner Broadcasting• ValueVision Media• Viacom• VUE• Walt Disney•
Rankings
#132 in FT Global 500 •
Subsidiaries/Affiliates Covered By Hoover's Online
Ascent Media Group, Inc.Blink Digital♦ Level 3 Post♦
•
Courtroom Television Network LLC• Discovery Communications, Inc.• DMX MUSIC, Inc.• E! Entertainment Television, Inc.• GSN•
Report Builder − Liberty Media Corporation − Hoover's Online 3
InterActiveCorpEntertainment Publications, Inc.♦ Evite, Inc.♦ Expedia, Inc.
Classic Custom Vacations, Inc.◊ Travelscape.com, Inc.◊
♦
Hancock Information Group, Inc.♦ Hotels.com
TravelNow.com, Inc.◊ ♦
Hotwire♦ HSN♦ Interval International♦ LendingTree, Inc.♦ Precision Response Corporation
Avaltus, Inc.◊ ♦
TicketmasterMatch.com, Inc.◊ TicketWeb, Inc.◊
♦
TV Travel Shop Ltd♦ ZeroDegrees, Inc.♦
•
Liberty Media International, Inc.• On Command Corporation• OpenTV Corp.
BettingCorp♦ •
QVC, Inc.The Knot, Inc.♦ QVC UK♦
•
Starz Encore Group LLC•
Report Builder − Liberty Media Corporation − Hoover's Online 4
Biographies
John C. Malone, Age 63
Chairman
Other Company Affiliations
Company Title Salary Bonus
The Bank of New York Company, Inc. Director
InterActiveCorp Director
UnitedGlobalCom, Inc. DirectorBiography
Dr. John C. Malone is Chairman of Liberty Media Corporation, a position he has held since 1990. From 1996 to March,1999 when Tele−Communications, Inc., (TCI) merged with AT&T Corp., he was also Chairman and Chief ExecutiveOfficer of TCI. Previous to that, from 1973 to 1996, Dr. Malone served as President and CEO of TCI. He currently serveson the Board of Directors for the Bank of New York, the CATO Institute, Discovery Communications, Inc., The NatureConservancy, UnitedGlobalCom, Inc., and IAC/InterActiveCorp. Additionally, Dr. Malone is Chairman Emeritus of theBoard for Cable Television Laboratories, Inc. Born March 7, 1941, in Milford, Connecticut, Dr. Malone was a Phi BetaKappa and merit scholar at Yale University where he obtained a Bachelor of Science in Electrical Engineering andEconomics in 1963. He also received a Master of Science in Industrial Management from Johns Hopkins in 1964 and aDoctor of Philosophy (Ph.D.) in Operations Research from Johns Hopkins in 1967. Dr. Malone began his career in 1963at Bell Telephone Laboratories/AT&T in economic planning and research and development. In 1968, he joined McKinsey& Company and in 1970 he became Group Vice President at General Instrument Corporation (GI). He was later namedPresident of Jerrold Electronics, a GI subsidiary. He served as Director of the National Cable Television Association(NCTA) from 1974 to 1977 and again from 1980 to 1993. During the 1977−1978 term, Dr. Malone was the NCTA'sTreasurer. In 1983, Dr. Malone received the NCTA Vanguard Award, one of the highest honors in the cable televisionindustry. He has received many other awards and honors which include: TVC Magazine Man of the Year Award − 1981;Wall Street Transcript's Gold Award for the cable industry's best Chief Executive Officer − 1982, 1985, 1986 and 1987;Wall Street's Transcript Silver Award in 1984 and 1989; Women In Cable's Betsy Magness Fellowship Honoree;University of Pennsylvania Wharton School Sol C. Snider Entrepreneurial Center Award of Merit for DistinguishedEntrepreneurship; American Jewish Committee Sherrill C. Corwin Human Relations Award; Denver University HonoraryDegree for Doctorate of Human Letters − 1992; Communications Technology Magazine Service and Technology Award;Bronze Award − 1993 Financial World CEO of the Year Competition; and 1994 Hopkins Distinguished Alumnus Award.
Source: Company Web Site, 2004
Robert R. Bennett, Age 46
President, CEO, and Director, $1,000,000 salary
Other Company Affiliations
Company Title Salary Bonus
InterActiveCorp Director
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Liberty Media International, Inc. Chairman; President and CEO, Liberty Media Corporation
UnitedGlobalCom, Inc. DirectorRecent Work Highlights
Liberty Digital, Inc.Last position held, Chairman♦
•
Biography
Robert R. Bennett is President and Chief Executive Officer of Liberty Media Corporation. He is also a member of theBoard of Directors of Liberty Media Corporation and serves on the Executive Committee of that board. Mr. Bennett hasbeen with Liberty since its inception in 1990. Prior to being named President in early 1997, he served as Liberty'sprincipal financial officer and in various other officer capacities. Prior to the creation of Liberty, he was Vice Presidentand Director of Finance at TCI, where he was employed since 1987. Before joining TCI, Mr. Bennett was with The Bankof New York in its Communications Entertainment and Publishing Division. Mr. Bennett's directorships include:Discovery Communications, Inc., IAC/InterActiveCorp, Starz Encore Group, Ascent Media Group, UnitedGlobalCom,Inc., OpenTV Corp, Liberty Satellite & Technology, Inc.. Mr. Bennett received a BA with Honors in Economics fromDenison University and he received his MBA from Columbia University.
Source: Company Web Site, 2004
Gary S. Howard, Age 53
EVP, COO, and Director (Retiring in February 2004), $787,500 salary
Other Company Affiliations
Company Title Salary Bonus
Liberty Media International, Inc. EVP and COO
Liberty Satellite & Technology, Inc Chairman
SpectraSite, Inc. DirectorRecent Work Highlights
Liberty Digital, Inc.Last position held, Director♦
•
Biography
Executive Vice President, Chief Operating Officer and a director of Liberty since July 1998. Mr. Howard served as ChiefExecutive Officer of Liberty Satellite from December 1996 to April 2000. Mr. Howard also served as Executive VicePresident of TCI from December 1997 to March 1999; as Chief Executive Officer, Chairman of the Board and a directorof TV Guide, Inc. from June 1997 to March 1999; and as President and Chief Executive Officer of TCI Ventures Group,LLC from December 1997 to March 1999. Mr. Howard is a director of Ascent Media, Liberty Satellite,UnitedGlobalCom, On Command Corporation and SpectraSite, Inc. Mr. Howard serves as Chairman of the Board ofLiberty Satellite and On Command.
Source: 10K, March 25, 2003
Report Builder − Liberty Media Corporation − Hoover's Online 6
Elizabeth M. Markowski
SVP, $600,000 salary
Recent Work Highlights
Liberty Digital, Inc.Last position held, SVP and General Counsel♦
•
Biography
Senior Vice President since November 2000; a partner in the law firm of Baker Botts L.L.P for more than five years priorto November 2000.
Source: 10K, March 25, 2003
Michael P. Zeisser
SVP
Other Company Affiliations
Company Title Salary Bonus
OpenTV Corp. ChairmanBiography
Mr. Zeisser joins Liberty Media following a 12−year career at McKinsey & Company where he was a partner in theMedia and Private Equity Practice. While at McKinsey & Company, Mr. Zeisser specialized in strategic consulting,mergers and acquisitions, due diligence, corporate restructuring and performance improvement. Mr. Zeisser's clientsspanned the media, telecommunications, consumer, and business services industries. Mr. Zeisser will focus on strategicplanning, mergers and acquisitions and business development for Liberty Media and its affiliated businesses throughoutthe world.
Source: Company Press Release, September 15, 2003
Christopher W. (Chris) Shean, Age 38
SVP and Controller
Biography
A Senior Vice President of Liberty since January 2002 and Controller of Liberty since October 2000. Mr. Shean served asa Vice President of Liberty from October 2000 to January 2002. Prior to joining Liberty, Mr. Shean served in theassurance practice of the accounting firm of KPMG for more than five years, most recently as a partner.
Source: 10K, March 25, 2003
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Anthony G. (Tony) Werner, Age 47
SVP and CTO
Other Company Affiliations
Company Title Salary Bonus
Dycom Industries, Inc. Director
Net2Phone, Inc. Director
OpenTV Corp. DirectorBiography
A 20−year industry veteran, Tony G. Werner is CTO for Liberty Media. He received the NCTA Vanguard Award forScience and Technology in 2000, and has published several technical papers on network powering, regional hubarchitecture, the effects of cascading digital systems, and HFC traffic engineering. As chair, Werner leads thesubcommittee in selecting the program for Expo's technical workshops.
Source: Cable−Tec Expo Program, 2003
David J. A. Flowers, Age 49
SVP and Treasurer, $323,077 salary
Biography
Senior Vice President since October 2000; Treasurer since April 1997; Vice President from June 1995 to October 2000.
Source: 10K, March 25, 2003
Charles Y. Tanabe, Age 52
SVP, General Counsel, and Secretary, $600,000 salary
Biography
Secretary since April 2001; Senior Vice President and General Counsel since January 1999; a member of Sherman &Howard L.L.C. for more than five years prior to January 1999.
Source: 10K, March 25, 2003
Albert Rosenthaler
SVP Tax Strategy, Planning and Compliance
Report Builder − Liberty Media Corporation − Hoover's Online 8
Biography
A Senior Vice President of Liberty since April 2002. Prior to joining Liberty, Mr. Rosenthaler was a tax partner in theaccounting firm of Arthur Andersen LLP for more than five years.
Source: 10K, March 25, 2003
Miranda Curtis
SVP; President, Liberty Media International
Other Company Affiliations
Company Title Salary Bonus
Liberty Media International, Inc. PresidentBiography
Miranda Curtis has been President of Liberty Media International (LMI) since February 1999. In that capacity sheoversees all LMI's operations in cable and programming in Europe, Japan and Latin America. Ms Curtis was previouslyExecutive Vice President of LMI's predecessor company, Tele−Communications International Inc (TINTA). Beforejoining TINTA when it was first formed in 1992, Ms. Curtis worked for several years in the UK cable industry with thepredecessors of Telewest and Flextech. She has also worked in CD−ROM publishing and in broadcasting. Ms Curtis'principal Board Directorships include: Jupiter Telecommunications Co Ltd and Jupiter Programming Co Ltd (Japan), andPrinces Holdings Ltd (Ireland).
Source: Company Web Site, 2004
John A. Orr
VP
Biography
Prior to joining Liberty Media in 1999, Mr. Orr was the Vice President of Investments of TCI Ventures Group, TCI'stechnology business development unit. Before joining TCI Ventures, Mr. Orr was with The Quaker Oats Company in itsBusiness Development and Treasury groups. Mr. Orr also worked with Flaherty & Crumrine, Inc., an investment counselfirm in Pasadena, California. Mr. Orr currently serves on the Boards of Directors of several Liberty Media affiliatesincluding TruePosition, Inc. Mr. Orr also serves on the advisory board of IQNavigator, an e−workforce managementcompany in Denver. Mr. Orr received a BA in Economics from the University of Colorado and he received his MBA fromThe Wharton School at the University of Pennsylvania.
Source: Company Press Release, February 13, 2003
Michael Erickson
VP Investor and Media Relations
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Biography
He has been the Vice President and Controller for Liberty Media International, Inc. (LMI), a wholly−owned subsidiary ofLiberty. At LMI, Mr. Erickson was responsible for overseeing all of LMI's operations in Latin America including its cabletelevision, programming and broadcast companies in Argentina, Chile and Puerto Rico. His responsibilities primarilyincluded business development and the day−to−day activities of LMI's wholly−owned and affiliated companiesthroughout South America and the Caribbean. At LMI's predecessor, Tele−Communications International, Inc. (TINTA, apublicly−traded company), Mr. Erickson was also responsible for the day−to−day financial and accounting activitiesincluding investor relations and financial reporting. Mr. Erickson also worked for over seven years at the publicaccounting firm of KPMG.
Source: Company Press Release,
Peter C. Boylan III, Age 40
President and CEO, Liberty Broadband Interactive Television
Other Company Affiliations
Company Title Salary Bonus
BOK Financial Corporation DirectorRecent Work Highlights
Wink Communications, Inc.Last position held, Chairman♦
•
Donne F. Fisher, Age 66
Director
Other Company Affiliations
Company Title Salary Bonus
General Communication, Inc. Chairman
Sorrento Networks Corporation DirectorBiography
A director of our company since October 2001; President of Fisher Capital Partners, Ltd., a venture capital partnership,since December 1991; a consultant to AT&T Broadband since 1996; a director of General Communication, Inc. andSorrento Networks Corporation.
Source: 10K, March 25, 2003
Paul A. Gould, Age 59
Director
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Other Company Affiliations
Company Title Salary Bonus
Ampco−Pittsburgh Corporation Director
UnitedGlobalCom, Inc. DirectorBiography
A director of our company since March 1999; Managing Director and Executive Vice President of Allen & CompanyIncorporated, an investment banking services company, for more than the last five years; a director of On CommandCorporation and Ampco−Pittsburgh Corporation.
Source: 10K, March 25, 2003
David E. Rapley, Age 62
Director
Biography
A director of our company since July 2002; Executive Vice President Engineering of UBCO Corp.−Alaska from January1998 to December 2001; President and owner of Rapley Engineering Services, Inc. from February 1996 to December1997.
Source: 10K, March 25, 2003
Larry Romrell, Age 64
Director
Other Company Affiliations
Company Title Salary Bonus
ARRIS Group, Inc. DirectorBiography
A director of our company since March 1999; Executive Vice President of TCI from January 1994 to March 1999; aconsultant to AT&T Broadband since March 1999; Executive Vice President and Chief Executive Officer of TCIBusiness Alliance and Technology Co. from December 1997 to March 1999; Senior Vice President of TCI VenturesGroup, LLC from December 1997 to March 1999; President of TCI Technology Ventures, Inc. from September 1994 toOctober 1997; a director of Liberty Livewire Corporation and Arris Group, Inc.
Source: 10K, March 25, 2003
Report Builder − Liberty Media Corporation − Hoover's Online 11
Overview
Liberty Media takes its freedom to acquire other businesses seriously. Liberty has stakes in a wide variety of cablechannels such as the Discovery Channel and E!, and it owns 98% of home shopping network QVC. In addition, LibertyMedia is one of the largest shareholders of News Corp. (17%). The company was a subsidiary of AT&T, which hadacquired former parent Tele−Communications, Inc. (TCI) in 1999. In 2001 AT&T spun off Liberty Media as part of thephone giant's plan to split its empire into several companies. Liberty Media plans a spinoff of its own by separating itsinternational assets into a new company. The firm is chaired by former TCI head John Malone, who now owns a majorityof its stock.
The company's holdings include Discovery Communications (50%) and wireless operator Sprint PCS (19%). Thecompany also owns a 20% stake in InterActiveCorp, formerly known as USA Interactive, and a 4% stake in VivendiUniversal.
Liberty Media has transferred its 21% stake in Gemstar−TV to News Corp. The company owns a 98% stake in shoppingnetwork QVC after acquiring shares from Comcast.
Liberty Media had plans to become a big player in European cable through its purchase of UnitedGlobalCom. OtherEuropean purchases, however, did not go according to plan.The company's bid to buy stakes in six of Germany's ninecable television firms owned by Deutsche Telekom was rejected by German regulators. Its $731 million deal to buy Dutchcable operator Casema was also called off. In a deal with BCI International, Liberty sold portions of ownership interests inseveral of its cable subsidiaries, including Chorus Communications and Telewest Communications. Liberty Media plansto spin off its businesses in Europe, Japan, and Latin America into a new company owned by Liberty Media shareholders.
Liberty Media has formed a new company, Liberty Broadband Interactive Television, which focuses on developing andinvesting in the interactive television sector. The new unit manages interactive television company OpenTV, in whichLiberty owns a controlling stake. OpenTV has boosted its presence with its purchase of Wink Communications and a dealto buy ACTV.
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History
The man who would be king of cable programming got his start on the hardware end of the business. In 1970 JohnMalone became president of General Instrument's Jerrold Communications subsidiary, which supplied equipment to thethen−new cable TV industry. One of Jerrold's customers was Bob Magness, a former Texas rancher who in the 1950sstarted the company that eventually became Denver−based cable operator Tele−Communications, Inc. (TCI). In the early1970s, TCI struggled, in need of leadership. In 1973 the 32−year−old Malone was named CEO of TCI.
Malone restructured TCI's debt in 1977, paving the way for expansion into bigger cable markets after deregulation in1984. He also acquired programming, buying stakes in Black Entertainment Television (33%, 1979, sold to Viacom in2001), the Discovery Channel (14%, 1986), and American Movie Classics (50%, 1986). In 1987 TCI helped savedebt−plagued Turner Broadcasting and came away with 12% of Turner Broadcasting's stock.
Due in part to antitrust pressure from government regulators, in 1991 TCI spun off much of its programming assets, alongwith interests in 14 cable systems, as Liberty Media. Malone became chairman and principal shareholder. In its first yearthe company launched Court TV in a joint venture, and introduced film channel Encore. The next year it bought aninterest in the Home Shopping Network (which became USA Networks in 1998, and later changed names to USAInteractive in 2002 and then InterActiveCorp in 2003).
In 1994 TCI reacquired Liberty Media; it issued a tracking stock the next year to reflect the value of Liberty's programassets. Also in 1995 Liberty Media and News Corp. joined forces to create FOX/Liberty Networks, a national sportsnetwork designed to compete with Disney's ESPN.
Control of TCI's stake in Turner Broadcasting was passed to Liberty Media after Turner was acquired by Time Warner in1996, giving Liberty Media a 9% holding in entertainment giant Time Warner. (AOL acquired Time Warner in 2001 toform AOL Time Warner. AOL Time Warner resumed the Time Warner name.) That year Magness died, and Malonebecame TCI's chairman. In 1998 Liberty Media and BET's chairman Robert Johnson bought out BET in a $380 milliondeal.
ATbought TCI for $55 billion in 1999 to form ATTBroadband. As part of the deal, ATTfolded TCI Ventures into LibertyMedia, including stakes in Sprint PCS, United Video Satellite Group (now Gemstar−TV Guide), General Instrument(Motorola bought General Instrument in 2000), and TCI International, and issued a new tracking stock for Liberty Media.The company later traded its interest in FOX/Liberty Networks (now called Fox Sports Networks) for an 8% interest (laterincreased to 19%) in News Corp. and agreed to buy Associated Group and a stake in wireless communications companyTeligent (the deal closed in early 2000). It called off a deal to acquire Ascent Entertainment Group, provider of in−roomentertainment services, because Ascent could not sell its sports teams.
In 2000 Liberty Media invested about $400 million in hotel franchisor and marketing services giant Cendant and about$200 million in media conglomerate PRIMEDIA, and it bought about 20% of Canadian media group CorusEntertainment. It also finalized a deal to buy 60% of postproduction businesses Todd−AO (renaming it Liberty Livewire).Later that year it revived a dead deal and bought the majority of Ascent Media. Liberty Media promptly sold Ascent'ssports teams to Wal−Mart heir Stan Kroenke. That year Liberty Media folded various Latin American broadband assetsinto UnitedGlobalCom in exchange for a 45% stake and merged Japan−based Jupiter Telecommunications (35%) withMicrosoft's Titus Communications.
In 2001 AT&T spun off Liberty Media as part of a plan to restructure the phone giant into four separate companies. Thefirm became solely under Malone's control. In fall 2001 the company agreed to buy most of Germany's DeutscheTelekom's cable assets for $4.8 billion. (The deal fell through in early 2002 when German regulators nixed the purchase.)Shortly afterward, Liberty Media agreed to buy the network assets of Germany's #3 cable operator, TeleColumbus, ownedby Deutsche Bank. This deal also failed when it did not meet government conditions.
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The company restructured its deal with European cable operator UnitedGlobalCom in late 2001, upping its proposed 45%stake to 72% and retaining its Latin American assets. Also that year, Liberty Media contributed its ownership of AscentEntertainment and 89% stake in Liberty Satellite in exchange for shares in Liberty Satellite & Technology, Inc. In early2003 the firm rebranded Liberty Livewire under the Ascent Media name. Later that year the company bought theremaining 10% stake in Ascent Media that it did not own.
Liberty Media completed its purchase of the remaining UnitedGlobalCom stake that it did not own in 2004.
Report Builder − Liberty Media Corporation − Hoover's Online 14
Products/Operations
Liberty Media Group has interests in programming and communications companies in Asia, Europe, South America, andthe US.
Selected Ownership Interests
Broadcast and Cable• Court TV (50%)• Crown Media Holdings (13%)• Discovery Communications (50%)• E! Entertainment Television (10%)• GSN (50%)• InterActiveCorp (20%)• Jupiter Programming (50%, Japan)• MacNeil/Lehrer Productions (67%)• Pramer (Argentina)• The Premium Movie Partnership (20%, Australia)• QVC (98%)• Starz Encore Group• Time Warner (4%)• Torneos y Competencias (40%, Argentina)• Cable, Telephony, and Satellite• Cablevision (39%, Argentina)• Chorus Communications (40%, Ireland)• Jupiter Telecommunications (45%, Japan)• Liberty Cablevision of Puerto Rico• Liberty Satellite & Technology (87%)• Metropólis−Intercom (50%, Chile)• Sprint PCS Group (19%)• Telewest Communications (20%, UK)• TruePosition (89%)• UnitedGlobalCom• Direct Marketing Services• Cendant (3%)• Interactive and Internet Properties• Alloy (16%, Web site targeting youth ages 10−24)• On Command• OpenTV (33%, interactive TV technology)• ACTV (Web advertising and content tied to television programming)• Wink Communications (interactive broadcasting services)• Media• News Corp. (17%)• Vivendi Universal (4%)• Music• DMX Music (10%)• Postproduction Services• Ascent Media Group• Publishing• PRIMEDIA (6%)•
Report Builder − Liberty Media Corporation − Hoover's Online 15
Technology and Manufacturing• Arris Corporation (9%)• Motorola (3%)•
Report Builder − Liberty Media Corporation − Hoover's Online 16
Other Resources Available On Hoover's Online
News for Liberty Media (last 90 days)
Company Press Release Archive
Other Resources
Headquarters Map• SEC Filings
10−K Filings♦ •
Stock Quote• Stock Chart• Earnings Estimates• ValuEngine Analysis• Investor Relations • Financial Data Definitions• Market Data Definitions• Comparison Data Definitions• Historical Financials & Employees Definitions•
Related Products From Our Trusted Partners
Buy Reports and Books
D&B Business/Credit Reports: Liberty Media Corporation(D&B, Feb 1, 2004, Business Reports)
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Entertainment En Masse: An Overview of Media Conglomerates(Hoover's, Inc., Feb 1, 2004, Business Reports)
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Television Broadcasting Networks: Financial Analysis Profiles(BizMiner, Dec 23, 2003, Business Reports)
•
Cable and Other Program Distribution in the US(IBISWorld, Jan 26, 2004, Business Reports)
•
Plunkett's Entertainment & Media Industry Almanac 2002−2003(Plunkett Research, Ltd., Apr 15, 2002, Books)
•
Television Broadcasting Networks: Marketing Research Profiles(BizMiner, Dec 23, 2003, Business Reports)
•
Cable Networks in the US(IBISWorld, Dec 9, 2003, Business Reports)
•
Plunkett's Entertainment & Media Industry Trends and LeadingCompanies (Summary)(Plunkett Research, Ltd., Apr 26, 2002, Business Reports)
•
Additional 3rd Party Libraries
Additional Research On Liberty Media
Corporate Hierarchy •
Report Builder − Liberty Media Corporation − Hoover's Online 17
Annual Financials
All amounts in millions of US Dollars
Income Statement Dec 03 Dec 02 Dec 01
Revenue 4,028.0 2,084.0 2,059.0
Cost of Goods Sold 2,556.0 1,077.0 1,089.0
Gross Profit 1,472.0 1,007.0 970.0
Gross Profit Margin 36.5% 48.3% 47.1%
SG&A Expense 556.0 532.0 705.0
Depreciation & Amortization 510.0 384.0 984.0
Operating Income 406.0 91.0 (719.0)
Operating Margin 10.1% 4.4% −−
Nonoperating Income 674.0 1,459.0 (5,149.0)
Nonoperating Expenses 539.0 423.0 525.0
Income Before Taxes (850.0) (5,201.0) (10,882.0)
Income Taxes 374.0 (1,702.0) (3,908.0)
Net Income After Taxes (1,224.0) (3,499.0) (6,974.0)
Continuing Operations (1,222.0) (3,461.0) (6,748.0)
Discontinued Operations 0.0 0.0 0.0
Total Operations (1,222.0) (3,461.0) (6,748.0)
Total Net Income (1,222.0) (5,330.0) (6,203.0)
Net Profit Margin −− −− −−
Diluted EPS from Continuing Operations ($) (0.44) (1.34) (2.61)
Diluted EPS from Discontinued Operations ($) 0.00 0.00 0.00
Diluted EPS from Total Operations ($) (0.44) (1.34) (2.61)
Diluted EPS from Total Net Income ($)
Dividends per Share 0.00 0.00 0.00
Balance Sheet Dec 03 Dec 02 Dec 01
Assets
Current Assets
Cash 3,063.0 2,170.0 2,077.0
Net Receivables 1,100.0 362.0 356.0
Inventories 588.0 0.0 0.0
Report Builder − Liberty Media Corporation − Hoover's Online 18
Other Current Assets 1,668.0 1,968.0 1,098.0
Total Current Assets 6,419.0 4,500.0 3,531.0
Net Fixed Assets 1,508.0 915.0 941.0
Other Noncurrent Assets 46,086.0 34,270.0 44,067.0
Total Assets 54,013.0 39,685.0 48,539.0
Liabilities and Shareholders' Equity Dec 03 Dec 02 Dec 01
Current Liabilities
Accounts Payable 431.0 133.0 127.0
Short−Term Debt 117.0 655.0 1,143.0
Other Current Liabilities 2,288.0 1,239.0 1,510.0
Total Current Liabilities 2,836.0 2,027.0 2,780.0
Long−Term Debt 9,482.0 4,316.0 4,764.0
Other Noncurrent Liabilities 2,054.0 1,690.0 1,762.0
Total Liabilities 25,171.0 15,003.0 18,416.0
Shareholders' Equity
Preferred Stock Equity 0.0 0.0 0.0
Common Stock Equity 28,842.0 24,682.0 30,123.0
Total Equity 28,842.0 24,682.0 30,123.0
Shares Outstanding (mil.) 2,886.9 2,689.0 2,590.2
Cash Flow Statement Dec 03 Dec 02 Dec 01
Net Operating Cash Flow (12.0) 1.0 26.0
Net Investing Cash Flow 594.0 (253.0) (2,238.0)
Net Financing Cash Flow 311.0 345.0 2,994.0
Net Change in Cash 893.0 93.0 782.0
Depreciation & Amortization 510.0 384.0 984.0
Capital Expenditures (889.0) (233.0) (471.0)
Cash Dividends Paid 0.0 0.0 0.0
Data Definitions
Some financial information provided by Media General Financial Services, Inc. , Richmond, Virginia
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Quarterly Financials
All amounts in millions of US Dollars except per share amounts.
Income StatementQuarter
Ending Dec 03Quarter
Ending Sep 03Quarter
Ending Jun 03Quarter Ending
Mar 03Quarter
Ending Dec 02
Revenue 2,118.0 905.0 500.0 505.0 536.0
Cost of Goods Sold 1,448.0 571.0 279.0 0.0 (150.0)
Gross Profit 670.0 334.0 221.0 505.0 686.0
Gross Profit Margin 31.6% 36.9% 44.2% 100.0% 128.0%
SG&A Expense 163.0 74.0 181.0 396.0 517.0
Depreciation & Amortization 212.0 113.0 86.0 99.0 104.0
Operating Income 295.0 147.0 (46.0) 10.0 65.0
Operating Margin 13.9% 16.2% −− 2.0% 12.1%
Nonoperating Income 775.0 132.0 (531.0) 298.0 5,484.0
Nonoperating Expenses 164.0 149.0 126.0 100.0 102.0
Income Before Taxes (485.0) 130.0 (703.0) 208.0 (881.0)
Income Taxes 432.0 93.0 (239.0) 88.0 (255.0)
Net Income After Taxes (917.0) 37.0 (464.0) 120.0 (626.0)
Continuing Operations (931.0) 41.0 (464.0) 132.0 (596.0)
Discontinued Operations 0.0 0.0 0.0 0.0 0.0
Total Operations (931.0) 41.0 (464.0) 132.0 (596.0)
Total Net Income (931.0) 41.0 (464.0) 132.0 (687.0)
Net Profit Margin −− 4.5% −− 26.1% −−
Diluted EPS from ContinuingOperations ($)
(0.33) 0.02 (0.17) 0.05 (0.23)
Diluted EPS fromDiscontinued Operations ($)
0.00 0.00 0.00 0.00 0.00
Diluted EPS from TotalOperations ($)
(0.33) 0.02 (0.17) 0.05 (0.23)
Diluted EPS from Total NetIncome ($)
Dividends per Share 0.00 0.00 0.00 0.00 0.00
Balance SheetQuarter
Ending Dec 03Quarter
Ending Sep 03Quarter
Ending Jun 03Quarter Ending
Mar 03Quarter
Ending Dec 02
Assets
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Current Assets
Cash 3,063.0 3,262.0 3,529.0 3,462.0 2,170.0
Net Receivables 1,100.0 907.0 341.0 422.0 362.0
Inventories 588.0 602.0 0.0 0.0 0.0
Other Current Assets 1,668.0 1,871.0 1,849.0 1,885.0 1,968.0
Total Current Assets 6,419.0 6,642.0 5,719.0 5,769.0 4,500.0
Net Fixed Assets 1,508.0 1,435.0 876.0 891.0 915.0
Other Noncurrent Assets 46,086.0 47,801.0 39,730.0 34,053.0 34,270.0
Total Assets 54,013.0 55,878.0 46,325.0 40,713.0 39,685.0
Liabilities andShareholders' Equity
QuarterEnding Dec 03
QuarterEnding Sep 03
QuarterEnding Jun 03
Quarter EndingMar 03
QuarterEnding Dec 02
Current Liabilities
Accounts Payable 431.0 402.0 117.0 114.0 133.0
Short−Term Debt 117.0 471.0 724.0 619.0 655.0
Other Current Liabilities 2,288.0 1,907.0 1,330.0 1,125.0 1,239.0
Total Current Liabilities 2,836.0 2,780.0 2,171.0 1,858.0 2,027.0
Long−Term Debt 9,482.0 11,415.0 6,390.0 5,478.0 4,316.0
Other Noncurrent Liabilities 2,054.0 2,258.0 2,512.0 2,058.0 1,690.0
Total Liabilities 25,171.0 26,575.0 19,475.0 16,254.0 15,003.0
Shareholders' Equity
Preferred Stock Equity 0.0 0.0 0.0 0.0 0.0
Common Stock Equity 28,842.0 29,303.0 26,850.0 24,459.0 24,682.0
Total Equity 28,842.0 29,303.0 26,850.0 24,459.0 24,682.0
Shares Outstanding (mil.) 2,886.9 2,903.4 2,685.1 2,685.1 2,689.0
Cumulative Cash FlowStatement
QuarterEnding Dec 03
QuarterEnding Sep 03
QuarterEnding Jun 03
Quarter EndingMar 03
QuarterEnding Dec 02
Net Operating Cash Flow (12.0) (352.0) (7.0) (176.0) 1.0
Net Investing Cash Flow 594.0 (1,675.0) (1,035.0) 92.0 (253.0)
Net Financing Cash Flow 311.0 3,119.0 2,401.0 1,376.0 345.0
Net Change in Cash 893.0 1,092.0 1,359.0 1,292.0 93.0
Depreciation & Amortization 212.0 113.0 86.0 99.0 104.0
Capital Expenditures (889.0) (808.0) (59.0) (29.0) (233.0)
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Cash Dividends Paid 0.0 0.0 0.0 0.0 0.0
Data Definitions
Some financial information provided by Media General Financial Services, Inc. , Richmond, Virginia
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Historical Financials & Employees
Income Statement
YearRevenue
($ mil.)Net Income
($ mil.)Net Profit
MarginEmployees
Dec 03 4,028.0 (1,222.0) −− 17,670
Dec 02 2,084.0 (5,330.0) −− 7,460
Dec 01 2,059.0 (6,203.0) −− 7,455
Dec 00 1,526.0 1,488.0 97.5% 6,940
Dec 99 729.0 (2,022.0) −− 1,669
Dec 98 1,559.0 2,157.0 138.4% 1,620
Dec 97 374.2 124.6 33.3% 350
Dec 96 1,339.4 1,056.4 78.9% 5,800
Dec 95 1,540.0 (56.0) −− 6,150
Dec 94 1,483.0 133.0 9.0% 5,900
Stock History
YearStock Price ($) P/E Per Share ($)
FYHigh
FYLow
FYClose
High Low Earns. Div.BookValue
Dec 03 12.3 8.4 11.9 −− −− (0.4) 0.0 10.0
Dec 02 15.0 6.2 8.9 −− −− (2.1) 0.0 9.2
Dec 01 18.0 9.8 14.0 −− −− (2.4) 0.0 11.6
Dec 00 30.7 10.8 13.6 53.0 18.5 0.6 0.0 13.3
Dec 99 28.4 10.9 28.4 −− −− (0.8) 0.0 15.0
Dec 98 11.7 5.5 11.5 5.3 2.5 2.2 0.0 8.9
Dec 97 6.2 3.0 6.0 76.9 37.3 0.1 0.0 0.6
Dec 96 3.0 2.0 2.7 −− −− 0.6 0.0 1.5
Dec 95 2.8 2.0 2.5 −− −− (0.0) 0.0 1.1
Dec 94 −− −− −− −− −− −− −− −−
2003 Year−End Financials
Debt ratio 32.9%
Cash ($ mil.) 3,063.0
Current ratio 2.26
Long−term debt ($ mil.) 9,482.0
Shares Outstanding (mil.) 2,886.9
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Dividend yield 0.0%
Dividend payout −−
Market value ($ mil.) 34,325.7
Data Definitions
Some financial information provided by Media General Financial Services, Inc. , Richmond, Virginia
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Market Data
Current Information
Last Close 16−Mar−2004 $11.28 Price/Sales Ratio 8.12
52−Week High $12.45 Price/Book Ratio 1.13
52−Week Low $9.52 Price/Earnings Ratio −−
60−Month Beta 1.8 Price/Cash Flow Ratio (45.12)
Market Value (mil.) $32,714.7Return on Assets (2.3%)
Shares Outstanding (mil.) 2,900.2 Return on Equity −−
Dividend Rate 0.00 Current Ratio 2.26
Dividend Yield 0.0% Long−Term Debt/Equity 0.33
# of Institutional Holders 1,524 % Owned by Institutions 71.9%
Latest Short Interest Ratio 1.60 Latest Net Insider Transactions 0.00
Growth Rates 12 Month 36 Month 60 Month
Revenue Growth 93.3% 34.0% 26.3%
EPS Growth −− −− −−
Dividend Growth −− −− −−
Data Definitions
Some financial information provided by Media General Financial Services, Inc. , Richmond, Virginia
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Comparison Data
Profitability Company Industry 1 Market 2
Gross Profit Margin 36.54% 51.11% 48.19%
Pre−Tax Profit Margin (21.10%) (28.97%) 6.72%
Net Profit Margin (30.34%) (22.34%) 3.78%
Return on Equity −− −− 7.4%
Return on Assets (2.3%) (4.1%) 1.2%
Return on Invested Capital (3.2%) (6.9%) 3.7%
Valuation Company Industry 1 Market 2
Price/Sales Ratio 8.12 3.34 1.39
Price/Earnings Ratio −− −− 36.25
Price/Book Ratio 1.13 2.33 2.71
Price/Cash Flow Ratio (45.12) 289.57 13.91
Operations Company Industry 1 Market 2
Days of Sales Outstanding 98.31 38.28 59.16
Inventory Turnover 8.7 14.4 7.6
Days Cost of Goods Sold in Inventory 41 25 48
Asset Turnover 0.1 0.2 0.3
Net Receivables Turnover Flow 5.5 10.7 6.2
Effective Tax Rate −− −− 42.4%
Financial Company Industry 1 Market 2
Current Ratio 2.26 0.52 1.41
Quick Ratio 1.6 0.4 1.0
Leverage Ratio 1.87 3.76 5.95
Total Debt/Equity 0.33 1.52 1.40
Interest Coverage (0.60) (0.60) 2.20
Per Share Data ($) Company Industry 1 Market 2
Revenue Per Share 1.39 6.06 19.86
Fully Diluted Earnings Per Sharefrom Total Operations
(0.44) (1.56) 0.76
Dividends Per Share 0.00 0.00 0.43
Cash Flow Per Share (0.25) 0.07 1.98
Working Capital Per Share 1.24 (2.52) 2.22
Long−Term Debt Per Share 3.27 10.73 10.29
Book Value Per Share 9.94 8.69 10.15
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Total Assets Per Share 18.62 32.64 60.41
Growth Company Industry 1 Market 2
12−Month Revenue Growth 93.3% 22.2% 6.1%
12−Month Net Income Growth −− −− 129.0%
12−Month EPS Growth −− −− 137.5%
12−Month Dividend Growth −− −− 4.9%
36−Month Revenue Growth 34.0% 18.6% 2.3%
36−Month Net Income Growth −− −− (11.4%)
36−Month EPS Growth −− −− (12.0%)
36−Month Dividend Growth −− −− 2.2%1Industry: CATV SystemsIndustry classifications are from Media General Financial Services, Inc. .
2 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.
Data Definitions
Some financial information provided by Media General Financial Services, Inc. , Richmond, Virginia
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Competitive Landscape
KEY: Best of Group. Companies listed are Top Competitors.
Key NumbersLibertyMedia
Hearst 1 Rainbow Media 1 Viacom
Annual Sales ($mil.) 4,028.0 −− 764.8 26,585.3
Employees 17,670 20,000 −− 117,750
Market Value ($mil.) 32,714.7 −− −− 64,493.6
ProfitabilityLibertyMedia
Hearst 1 Rainbow Media 1 Viacom Industry 2 Market 3
Gross Profit Margin 36.54% −− −− 38.90% 51.11% 48.19%
Pre−Tax Profit Margin (21.10%) −− −− 10.76% (28.97%) 6.72%
Net Profit Margin (30.34%) −− −− 5.40% (22.34%) 3.78%
Return on Equity −− −− −− 2.3% −− 7.4%
Return on Assets (2.3%) −− −− 1.6% (4.1%) 1.2%
Return on Invested Capital (3.2%) −− −− 2.0% (6.9%) 3.7%
ValuationLibertyMedia
Hearst 1 Rainbow Media 1 Viacom Industry 2 Market 3
Price/Sales Ratio 8.12 −− −− 2.43 3.34 1.39
Price/Earnings Ratio −− −− −− 45.23 −− 36.25
Price/Book Ratio 1.13 −− −− 1.02 2.33 2.71
Price/Cash Flow Ratio (45.12) −− −− 26.30 289.57 13.91
OperationsLibertyMedia
Hearst 1 Rainbow Media 1 Viacom Industry 2 Market 3
Days of Sales Outstanding 98.31 −− −− 58.72 38.28 59.16
Inventory Turnover 8.7 −− −− 11.7 14.4 7.6
Days Cost of Goods Sold inInventory
41 −− −− 31 25 48
Asset Turnover 0.1 −− −− 0.3 0.2 0.3
Net Receivables Turnover Flow 5.5 −− −− 6.6 10.7 6.2
Effective Tax Rate −− −− −− −− −− 42.4%
FinancialLibertyMedia
Hearst 1 Rainbow Media 1 Viacom Industry 2 Market 3
Current Ratio 2.26 −− −− 1.02 0.52 1.41
Quick Ratio 1.6 −− −− 0.7 0.4 1.0
Leverage Ratio 1.87 −− −− 1.42 3.76 5.95
Total Debt/Equity 0.33 −− −− 0.16 1.52 1.40
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Interest Coverage (0.60) −− −− 4.90 (0.60) 2.20
Per Share Data ($)LibertyMedia
Hearst 1 Rainbow Media 1 Viacom Industry 2 Market 3
Revenue Per Share 1.39 −− −− 15.29 6.06 19.86
Fully Diluted Earnings Per Sharefrom Total Operations
(0.44) −− −− 0.82 (1.56) 0.76
Dividends Per Share 0.00 −− −− 0.06 0.00 0.43
Cash Flow Per Share (0.25) −− −− 1.41 0.07 1.98
Working Capital Per Share 1.24 −− −− 0.09 (2.52) 2.22
Long−Term Debt Per Share 3.27 −− −− 5.57 10.73 10.29
Book Value Per Share 9.94 −− −− 36.35 8.69 10.15
Total Assets Per Share 18.62 −− −− 51.67 32.64 60.41
GrowthLibertyMedia
Hearst 1 Rainbow Media 1 Viacom Industry 2 Market 3
12−Month Revenue Growth 93.3% −− −− 8.0% 22.2% 6.1%
12−Month Net Income Growth −− −− −− (34.9%) −− 129.0%
12−Month EPS Growth −− −− −− (33.9%) −− 137.5%
12−Month Dividend Growth −− −− −− −− −− 4.9%
36−Month Revenue Growth 34.0% −− −− 9.5% 18.6% 2.3%
36−Month Net Income Growth −− −− −− −− −− (11.4%)
36−Month EPS Growth −− −− −− −− −− (12.0%)
36−Month Dividend Growth −− −− −− −− −− 2.2%
1 Data unavailable.2 Industry: CATV SystemsIndustry classifications are from Media General Financial Services, Inc. .3 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.
Data Definitions
Some financial information provided by Media General Financial Services, Inc. , Richmond, Virginia
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Copyright 2004, Hoover's, Inc.
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