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Filed by Liberty Media Corporation
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934
Subject Corporation: Liberty Media Corporation
Commission File No.: 001-16615
Subject Corporation: Liberty Media Holding Corporation
Securities Act Registration File No.: 333-132452
EXHIBIT 99.1
[LOGO]
FOR IMMEDIATE RELEASE
APRIL 17, 2006
LIBERTY MEDIA CORPORATION ANNOUNCES 2006 GUIDANCE
Englewood, CO - As previously announced and subject to shareholder approval,
Liberty Media Corporation (NYSE:L; LMC.B) ("Liberty") intends to create two new
tracking stocks, one to reflect the performance of the assets and businesses
attributed to the Liberty Interactive Group and one to reflect the performance
of assets and businesses attributed to the Liberty Capital Group. Liberty
announced today the following 2006 outlook for the Liberty Interactive Group,
which includes QVC, its largest attributed operating business. In addition,
guidance is provided for Starz Entertainment Group, Liberty Capital Group's
largest attributed operating business.
LIBERTY INTERACTIVE GROUP
2006 GUIDANCE
Liberty expects the operations attributed to the Liberty Interactive Group,
which includes QVC for all of 2006 and Provide Commerce from the date of its
acquisition on February 9, 2006, to increase over the attributed 2005 operating
results, which included only QVC's operations, as follows:
o Revenue growth in the low double digits %.
o Operating cash flow (OCF) growth in low double digits %. *
o Operating income growth in low double digits %.
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* See : "Non--GAAP Financial Measures" for Liberty's definition of "Operating
Cash Flow" and why management believes estimated OCF is meaningful to investors.
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The foregoing estimates assume with respect to QVC, among other factors, that
its product mix and foreign currency exchange rates affecting its international
businesses will be consistent as compared to 2005, while revenue growth rates
will experience a slight slowing due to difficult comparisons to the favorable
results achieved in 2005. These estimated growth rates are not expected to be
achieved ratably on a quarterly basis as the Liberty Interactive Group's
attributed businesses will likely experience different quarter over quarter
growth rates for each calendar quarter of 2006.
Liberty is currently compiling its financial results for the first quarter of
2006 and expects to make those results publicly available on or about May 8,
2006. On a preliminary basis, Liberty expects that the attributed revenue growth
of the Liberty Interactive Group for the first quarter will be in the mid single
digits % and both the OCF and operating income growth will be in the high single
digits % . These results are attributable to sales performance that was slightly
below expectations for the quarter and negative exchange rate comparisons to the
first quarter of 2005 related to the international businesses. On a constant
dollar basis the expected growth rates for the quarter are in line with the
above stated full year guidance.
LONG-TERM OUTLOOK
Liberty expects that the combined compound annual growth rate in revenue and OCF
for the Liberty Interactive Group's attributed operating businesses over the
next five years, including the effects of potential acquisitions and assuming
constant foreign exchange rates, will be in the low double digits %.
LIBERTY CAPITAL GROUP
Liberty is not providing combined guidance for the businesses attributed to the
Liberty Capital Group for 2006 as such information is not considered meaningful
at this time. Guidance is being provided separately for Starz Entertainment
Group which is the largest operating business attributed to the Liberty Capital
Group.
STARZ ENTERTAINMENT GROUP-2006 GUIDANCE
Liberty expects that revenue, OCF and operating income of Starz Entertainment
Group ("SEG") for 2006 will be substantially similar to those recognized in
2005. This expectation is premised upon, among other factors, that SEG continues
to experience positive trends under its affiliation agreements, SEG's
distributors continue to see growth in digital subscribers consistent with that
experienced in 2005, the quantity and timing of receipt of output product from
the studios does not materially change from that experienced in 2005 and Starz
subscription units continue to increase. These estimates further assume that
SEG's 2006 programming costs increase by mid-single digit percentages over the
same periods in 2005.
ADDITIONAL INFORMATION
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Liberty Media Holding Corporation ("New Liberty") has filed a Registration
Statement on Form S-4 containing a definitive proxy statement/prospectus related
to a series of proposals to be voted on at the annual meeting of Liberty Media
Corporation, including a series of proposals pursuant to which New Liberty will
become Liberty's parent holding company and will issue, in exchange for
Liberty's existing common stock, two new tracking stocks. LIBERTY STOCKHOLDERS
AND OTHER INVESTORS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT/PROSPECTUS
BECAUSE IT CONTAINS IMPORTANT INFORMATION ABOUT THE TRANSACTION. Investors may
obtain a copy of the definitive proxy statement/prospectus and other documents
related to the transaction free of charge at the SEC's website
(http://www.sec.gov). Copies of the definitive proxy statement/prospectus and
the filings with the SEC that are incorporated by reference in the definitive
proxy statement/prospectus can also be obtained, without charge, by directing a
request to Liberty Media Corporation, 12300 Liberty Boulevard, Englewood,
Colorado 80112, Attention: Investor Relations Telephone: (877) 772-1518.
PARTICIPANTS IN SOLICITATION
The directors and executive officers of Liberty and other persons may be deemed
to be participants in the solicitation of proxies in respect of the proposals to
be voted on at Liberty's annual meeting. Information regarding Liberty's
directors and executive officers and other participants in the proxy
solicitation and a description of their direct and indirect interests, by
security holdings or otherwise, is available in the definitive proxy
statement/prospectus contained in the above-referenced Registration Statement.
ABOUT LIBERTY MEDIA CORPORATION
Liberty owns a broad range of electronic retailing, media, communications and
entertainment businesses and investments. It owns or has interests in some of
the world's most recognized and respected brands and companies, including QVC,
Encore, Starz, IAC/InterActiveCorp, Expedia and News Corporation.
FORWARD-LOOKING STATEMENTS
CERTAIN STATEMENTS IN THIS PRESS RELEASE MAY CONSTITUTE "FORWARD-LOOKING
STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995, INCLUDING THE STATEMENTS UNDER THE HEADINGS "LIBERTY INTERACTIVE
GROUP--2006 GUIDANCE", AND "STARZ ENTERTAINMENT GROUP-2006 GUIDANCE." SUCH
FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND
OTHER IMPORTANT FACTORS THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR
ACHIEVEMENTS OF THE OPERATING BUSINESSES OF LIBERTY DESCRIBED HEREIN OR INDUSTRY
RESULTS, TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH
RISKS, UNCERTAINTIES AND OTHER FACTORS INCLUDE, AMONG OTHERS: THE RISKS AND
FACTORS DESCRIBED IN THE PUBLICLY FILED DOCUMENTS OF LIBERTY, INCLUDING THE MOST
RECENTLY FILED FORM 10-K OF LIBERTY AND THE PROXY STATEMENT/PROSPECTUS
DISTRIBUTED IN CONNECTION WITH LIBERTY'S UPCOMING ANNUAL MEETING; GENERAL
ECONOMIC AND BUSINESS CONDITIONS AND INDUSTRY TRENDS INCLUDING IN THE
ADVERTISING AND RETAIL MARKETS; THE CONTINUED STRENGTH OF THE INDUSTRIES IN
WHICH SUCH BUSINESSES OPERATE; CONTINUED CONSOLIDATION OF THE BROADBAND
DISTRIBUTION AND MOVIE STUDIO INDUSTRIES; UNCERTAINTIES INHERENT IN PROPOSED
BUSINESS STRATEGIES AND DEVELOPMENT PLANS; CHANGES IN DISTRIBUTION AND VIEWING
OF TELEVISION PROGRAMMING, INCLUDING THE EXPANDED DEPLOYMENT OF PERSONAL VIDEO
RECORDERS AND IP TELEVISION AND THEIR IMPACT ON TELEVISION ADVERTISING REVENUE
AND HOME SHOPPING NETWORKS; INCREASED DIGITAL TELEVISION PENETRATION AND THE
IMPACT ON CHANNEL POSITIONING OF OUR NETWORKS; RAPID TECHNOLOGICAL CHANGES;
FUTURE FINANCIAL PERFORMANCE, INCLUDING AVAILABILITY, TERMS AND DEPLOYMENT OF
CAPITAL; AVAILABILITY OF QUALIFIED PERSONNEL; THE DEVELOPMENT AND PROVISION OF
PROGRAMMING FOR NEW TELEVISION AND TELECOMMUNICATIONS TECHNOLOGIES; CHANGES IN,
OR THE FAILURE OR THE INABILITY TO COMPLY WITH, GOVERNMENT REGULATION,
INCLUDING, WITHOUT LIMITATION, REGULATIONS OF THE FEDERAL COMMUNICATIONS
COMMISSION, AND ADVERSE OUTCOMES FROM REGULATORY PROCEEDINGS; ADVERSE OUTCOMES
IN PENDING LITIGATION; CHANGES IN THE NATURE OF KEY STRATEGIC RELATIONSHIPS WITH
PARTNERS AND JOINT VENTURES; COMPETITOR RESPONSES TO SUCH OPERATING BUSINESSES'
PRODUCTS AND SERVICES, AND THE OVERALL MARKET ACCEPTANCE OF SUCH PRODUCTS AND
SERVICES, INCLUDING ACCEPTANCE OF THE PRICING OF SUCH PRODUCTS AND SERVICES; AND
THREATENED TERRORIST ATTACKS AND ONGOING MILITARY ACTION, INCLUDING ARMED
CONFLICT IN THE MIDDLE EAST AND OTHER PARTS OF THE WORLD. THESE FORWARD-LOOKING
STATEMENTS SPEAK ONLY AS OF THE DATE OF THIS PRESS RELEASE. LIBERTY EXPRESSLY
DISCLAIMS ANY OBLIGATION OR UNDERTAKING TO DISSEMINATE ANY UPDATES OR REVISIONS
TO ANY FORWARD-LOOKING STATEMENT CONTAINED HEREIN TO REFLECT ANY CHANGE IN
LIBERTY'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS
OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED.
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CONTACT:
John Orr
(720) 875-5622
NON-GAAP FINANCIAL MEASURES
This press release includes an estimate of the anticipated percentage change in
2006 operating cash flow compared to 2005 operating cash flow for the Liberty
Interactive Group and SEG. Liberty defines operating cash flow, which is a
non-GAAP financial measure, as revenue less cost of sales, operating expenses,
and selling, general and administrative expenses (excluding stock compensation).
Operating cash flow, as defined by Liberty, excludes depreciation, amortization,
stock compensation and other non-cash charges taken into account in computing
operating income in accordance with GAAP.
Liberty's management uses revenue and operating cash flow as a measure of
operating performance and for purposes of making decisions about allocating
resources to its subsidiaries and affiliates. Liberty's management believes the
presentation of the estimated percentage changes in operating cash flow is
helpful information to investors as it provides insight into management's
expectation regarding operating performance during the coming year. Because
operating cash flow is used as a measure of operating performance, Liberty views
operating income as the most directly comparable GAAP measure. Operating cash
flow is not meant to replace or supersede operating income or any other GAAP
measure. No reconciliation of estimated operating cash flow for 2006 to
estimated operating income for the same year is presented because these
estimated operating metrics are presented in broad ranges of possible outcomes
which do not lend itself to meaningful reconciliation.