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Liberty takes Corus stake
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February 21, 2000: 8:27 a.m. ET
AT&T unit takes $140 million stake in radio and cable TV company
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NEW YORK (CNNfn) - AT&T Corp. subsidiary Liberty Media Group agreed Monday to pay nearly $140 million for a 20 percent stake in the newly created Canadian entertainment company Corus Entertainment Inc., significantly enhancing its children's television and radio holdings.
The deal will provide Liberty -- which already owns minority stakes in several cable operators, including USA Networks Inc., BET Holdings Inc., the owner of Black Entertainment Television, and Discovery Communications -- access to such popular Canadian networks as Country Music Television, Treehouse TV and YTV, Canada's leading youth network.
Created last September when Shaw Communications (SJR: Research, Estimates) spun off its media assets, Corus also owns 14 Canadian radio stations and is a leading seller of digital music.
The deal follows Liberty's $150 million investment in Emmis Communications Corp. (EMMS: Research, Estimates) in November, which marked the company's first foray into radio broadcasting.
"Liberty is well known for making investments in companies with strong growth potential and we are delighted they see that potential in Corus," said John Cassaday, Corus' president and chief executive officer.
Corus officials said they approached Liberty Media about making the investment last November. Terms of the deal call for Englewood, Colo.-based Liberty to pay C$28.05 for 7,125,000 shares of Corus class B non-voting shares for a 19.9 percent interest in the company.
The deal is contingent on WIC Western International Communications Inc., Canada's largest broadcasting company, which recently announced plans to sell its media and entertainment assets to Corus, completing an internal restructuring. That plan includes selling the 7.1 million shares to a unit of CanWest Global Communications Corp., which will then sell the shares to Liberty Media.
Liberty Media (LMG.A: Research, Estimates) shares lost 1-7/8 in trading Friday to close at 50-5/8. 
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