Liberty Media to Acquire Largest Stake in DIRECTV

Liberty's stake in News to be exchanged for 38.5% of DIRECTV, Three

Regional Sports Networks, and Cash

Dec 22, 2006, 00:00 ET from Liberty Media Corporation

    ENGLEWOOD, Colo., Dec. 22 /PRNewswire-FirstCall/ -- Liberty Media
 Corporation (Nasdaq:   LINTA, LCAPA) ("Liberty") announced today that it has
 entered into a definitive agreement with News Corporation ("News") to
 exchange Liberty's 16.3% stake in News for News's 38.5% stake in DIRECTV
 Group, Inc. (NYSE:   DTV) ("DIRECTV"), regional sports networks in Denver,
 Pittsburgh, and Seattle, and cash.
     "We are happy to become the largest shareholder in the world's largest
 satellite television provider. Chase Carey and the DIRECTV team have done a
 fantastic job, and we look forward to the strategic benefits of them
 joining the Liberty family," said Liberty President and CEO Greg Maffei who
 added, "During 2006 we converted many passive investments into strategic
 operating businesses, but this transaction is the largest and most
 important. DIRECTV and the regional sports networks represent a critical
 step in our efforts to transform Liberty Media into a well-positioned,
 focused operating company."
     "We are extremely pleased with the successful, tax-efficient conversion
 of our News holding. Our investment in DIRECTV will create financial,
 operating, and strategic flexibility," said Liberty Chairman John Malone.
 "Liberty's ownership of News has created tremendous value for our
 shareholders, and we are grateful to Rupert Murdoch and News management."
     DIRECTV President and CEO Chase Carey stated, "We are very excited
 about welcoming Liberty to DIRECTV. They bring a wealth of expertise in
 media and technology that will be invaluable. I have known both John Malone
 and Greg Maffei for over 10 years which gives me great confidence this
 transition will be smooth, and we will move forward without missing a beat.
 I also want to take advantage of this opportunity to thank Rupert Murdoch
 and News for their contributions to DIRECTV's success over the last three
     It is expected that Chase Carey will continue to serve as DIRECTV's
 President and CEO, and Liberty will appoint directors to fill the board
 seats currently held by News representatives.
     Under the agreement, pursuant to Section 355 of the IRC, Liberty will
 transfer to News 188,000,000 NWS shares and 324,637,067 NWS.A shares, and
 News will transfer to Liberty the stock of a subsidiary that holds
 470,420,752 shares of DIRECTV common stock, the Fox Sports Rocky Mountain,
 Northwest and Pittsburgh regional sports networks, and $550 million in
     The transaction, which was unanimously approved by the boards of News
 and Liberty, is expected to close in mid-2007, and is subject to regulatory
 and News Corp shareholder approvals and the receipt of a private letter
 ruling from the Internal Revenue Service.
     Liberty was represented in the transaction by the investment banking
 firm of Bear Stearns and the law firm of Baker Botts.
     About Liberty Media Corporation
     Liberty Media Corporation owns a broad range of electronic retailing,
 media, communications and entertainment businesses and investments. Those
 interests are attributed to two tracking stock groups: the Liberty
 Interactive group, which includes Liberty's interests in QVC, Provide
 Commerce, IAC/InterActiveCorp, and Expedia, and the Liberty Capital group
 includes Liberty's interests in Starz Entertainment, News Corporation, and
 Time Warner. For more information, please see
     About DIRECTV
     DIRECTV, Inc., the nation's leading satellite television service
 provider, presents the finest television experience available to more than
 15.6 million customers through exclusive content, industry-leading customer
 service (which has surpassed cable for six years running) and superior
 technologies. Each day, DIRECTV subscribers enjoy over 250 channels of 100%
 digital picture and sound; exclusive programming and the most comprehensive
 collection of sports programming available anywhere including NFL SUNDAY
 digital television technology revolution with exclusives such as NFL SUNDAY
 TICKET SuperFan(TM), US Open Interactive, and YES Network Interactive and
 will soon have the capacity to offer over 150 channels in HD. For the most
 up-to-date information on the Company, please visit
     Forward-Looking Statements: This press release contains forward-looking
 statements within the meaning of the Federal securities laws, including the
 anticipated completion date of the proposed transaction. These forward
 looking statements involve certain risks and uncertainties that could cause
 actual results to differ materially from those expressed or implied by
 these statements. For a description of these risks and uncertainties,
 please see the most recently filed Form 10-Q and Form 10-K for Liberty
 filed with the Securities and Exchange Commission.

SOURCE Liberty Media Corporation