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TCI unit picks Masters
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September 28, 1998: 2:56 p.m. ET
Former E! Entertainment chief hired to help start Liberty's new media unit
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NEW YORK (CNNfn) - Liberty Media Corp. said it has hired Lee Masters, former president and chief executive of E! Entertainment Television Inc., to head its newly formed Internet division.
Liberty Media, which represents the programming businesses of cable giant Tele-Communications Inc., will contribute its 86 percent interest in TCI Music Inc. to the new venture. Those assets include video music channel, The Box, and music websites, SonicNet.com and Addicted to Noise.
However, during a telephone interview, Masters explained his vision doesn't include pushing The Box into direct competition with Viacom Inc.'s MTV division -- the most globally recognized music network.
"MTV has a terrific brand. What we will develop is a business model that is very, very different from their model," Masters said.
Although Masters said it was premature to disclose his full vision for the Liberty Media businesses, the media executive did say his new employer provided a greater opportunity in its ability to marry content with hardware.
"I really believe in convergence and the capabilities with the (digital) set-top box. Nobody has a primary focus of developing content for the set-top," he said.
The new venture, Liberty Interactive, will be a wholly owned subsidiary of Liberty Media. The TCI company plans to make available appropriate financing and other resources as needed for the new entity.
In addition to Masters, Liberty Media has hired Bruce Ravenel as executive vice president and chief technology officer. Ravenel will assume his position immediately.
Masters' appointment as president and chief executive is effective on Jan. 1, to ensure a smooth transition from his departure at E!, a unit of Comcast Corp.
During his tenure, E! Entertainment Television network grew to more than 52 million subscribers with hits such as "Talk Soup" hosted by then-unknown Greg Kinnear.
"Lee took E! from a struggling network nine years ago and transformed it into a leading source of entertainment-industry information," said Robert "Dob" Bennett, president and chief executive of Liberty Media.
Masters, a nine-year veteran with the entertainment network, oversaw some of E!'s earliest forays into new media two years ago. When Masters left on Sept. 15, he reportedly pocketed a payout in the tune of $15 million to $20 million.
Masters declined to comment on his compensation package except to hint at an offer of stock ownership.
"My interest are directly tied to the interest of shareholders," he said.
Masters will report to a newly formed board of Liberty Interactive. The board will consist of five to seven directors.
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