Joining Liberty board of directors gives Andrea Wong some options

As part of her agreement to join Liberty Media's board of directors, former Lifetime President Andrea Wong has been granted shares in three of Liberty's tracking stocks.

According to a Securities and Exchange filing, Liberty's board has granted Wong 3,235 shares of Liberty Interactive, 530 shares of Liberty Capital and 295 shares of Liberty Starz.

Wong, 43, finished up her stint at Lifetime earlier this week and has already landed offices back at Walt Disney Co. She used to oversee alternative programming at ABC before moving to Lifetime and started at ABC working directly for Disney Chief Executive Bob Iger. An M.I.T. and Stanford graduate, Wong has also worked closely with Anne Sweeney, who oversees much of Disney's television operations. There is speculation that she could end up back at Disney.

As for joining the Liberty board, Company Town had heard that Wong had been a candidate for the top job at Starz, the pay cable channel that ultimately hired former HBO heavyweight Chris Albrecht as its chief. Wong did not respond for comment at that time but if in fact she was a candidate she must have impressed the Liberty folks enough for them to offer her the board seat.

-- Joe Flint

Time Warner still mulling MGM bid as deadline passes

 

The fate of Metro-Goldwyn-Mayer Inc. is still in limbo.

While bids for the troubled studio were due Friday, front-runner Time Warner Inc. was still mulling an offer late in the afternoon and it was unclear if, and when, the media company was going to bid, according to a person close to the matter. Two knowledgeable people said that if Time Warner, which owns Warner Bros. studio, did make an offer, it was expected to be under $1.5 billion.

It's possible that MGM has been forced to extend the deadline for final bids as Disney recently did with its Miramax Films unit, which is also up for sale. But as of Friday evening there was no official word and a spokeswoman for MGM didn't have any comment.

The field of prospective buyers for both studios has dwindled in recent weeks as the valuations being put on the properties came into question. John Malone’s Liberty Media and hedge fund Elliott Associates dropped out of the auction for MGM as Friday's deadline for binding offers approached; earlier Summit Entertainment and investment firm Qualia Capital bowed out of the running for Miramax.

Other expected to bid for MGM are industrialist Len Blavatnik's Access Industries and Lions Gate Entertainment, but it couldn't be determined if they had submitted bids yet. Early Friday morning, Carl Icahn launched a hostile takeover bid for Lions Gate and wants to block the company from buying MGM. Lions Gate had no comment but last week Vice Chairman Michael Burns said in an interview with The Times that, "We never pay retail for any asset."

It is unclear whether the bids expected to be submitted will be enough to appease MGM’s 150 creditors, who are said to be seeking at least $2 billion. Consequently, many believe the debt holders may call off the sale and opt for a plan to restructure MGM’s $3.7-billion debt and seek new capital -- or, as a last recourse, force the company into bankruptcy.

There are at least two alternative plans in the wings, including one from Twentieth-Century Fox parent News Corp. and another from Qualia Capital, a media investment fund run by Amir Malin and Ken Schapiro.

For several weeks, prospective buyers have been privately complaining they've been unable to get detailed financial information from MGM. Several suitors said that the more data they get, the more grim MGM’s prospects appear. They say that current cash flow from the studio's film library of about 4,000 titles is no more than $250 million — about half of what it was a few years ago — with future projections declining.

-- Claudia Eller

John Malone's Liberty Media to increase its stake in Live Nation Entertainment

One day after the merger of Ticketmaster and Live Nation cleared anti-trust review, John Malone's Liberty Media  Corp. said it would purchase up to 34.5 million shares of stock in the newly formed Live Nation Entertainment Inc.

Liberty, owner of the Starz cable network, said it would increase its stake to nearly 35% through a tender offer of $12 per share. Liberty, through subsidiaries, currently owns about 14.6% of Live Nation's stock. The purchase price represents a 14% premium over Monday's $10.51 closing price for Live Nation.

Liberty, once the largest shareholder of Ticketmaster, said it is party to a stockholder agreement which allows it to acquire up to a 35% stake in Live Nation. 

Live Nation, the world's largest concert promoter, and Ticketmaster, the dominant entertainment ticketing company, completed the merger Monday, subject to conditions set forth by the U.S. Department of Justice and 17 state attorneys general.

-- Dawn C. Chmielewski

Photo of Malone: Daniel Acker/Bloomberg News

Chris Albrecht tapped as CEO of Liberty Media's Starz

Chris Albrecht, the programmer and executive who took HBO to new heights before an arrest forced his exit, has been named president and chief executive of Liberty Media's pay cable and movie unit, Starz.

In his new role, which was announced early this morning, Albrecht will be charged with trying to make Starz more competitive with HBO and Showtime. The pay channel, which is part of John Malone's media empire, has been trying for years to make inroads in that arena and has had some mild success with its drama "Crash," based on the Oscar-winning movie.

Albrecht's move to Starz is not a complete shock. He had been developing a drama about the fashion world for the company already, Variety had reported (registration required).

"Chris is a recognized visionary in the creative community and uniquely qualified to lead Starz into the future," said Liberty Media President and Chief Executive Greg Maffei, to whom Albrecht will report.

Albrecht is succeeding longtime Starz chief Bob Clasen, who announced his retirement earlier this year. In a statement, Albrecht said he has always seen Starz as a "bold, entrepreneurial and growth-oriented brand." Besides Starz, Albrecht will also oversee Overture Films, Anchor Bay Entertainment and Film Roman.

Albrecht spent about 20 years at HBO and played a key role in the cable network's transformation from a theatrical-movie channel to a place for groundbreaking original programming, including "The Sopranos" and "Sex and the City." He was gone from HBO in 2007, soon after his arrest on suspicion of assaulting his girlfriend, which led to disclosures of other questionable incidents during his time at the network.

Industry analyst Rich Greenfied of Pali Research warned in a report on Albrecht's hiring (registration required) that while original programming may be the best long-term approach for Starz, it does mean costs will go up.

News of Albrecht's appointment was first reported late Monday evening by Deadline Hollywood.

-- Joe Flint

Photo: Chris Albrecht. Credit: HBO

Is John Malone really worried about Comcast-NBC or is there another agenda at play?

How's this for irony? Liberty Media Chairman John Malone, the cable mogul who was once dubbed Darth Vader by Al Gore and who wrote the book on how to combine content with distribution, squeeze competitors and build an empire, is apparently worried that a Comcast-NBC Universal combination would be too big.

According to the Associated Press, Malone said in an interview that the deal would require competitors to "look pretty hard on how they can protect themselves from the kind of market power that would represent."

Malone certainly knows a lot about market power. He built Tele-Communications Inc. into the nation's largest cable operator in the 1980s and used that leverage to become a major content provider as well. If you had a cable network and wanted to get distribution, you had to cut a deal with Malone. Regulators routinely had Tele-Communications in their sights, and even other media giants complained of strong-arm tactics from Malone and TCI. Sumner Redstone's Viacom even once sued TCI and Malone on anti-trust grounds.

While his footprint in American media has definitely shrunk, Malone is still a force. Liberty owns satellite broadcaster DirecTV, a stake in satellite radio operator Sirius XM, a big chunk of Barry Diller's IAC/InterActiveCorp, the Atlanta Braves and a piece of the Denver Nuggets. Malone himself has a stake in Discovery Communications and sits on its board.

Consumer advocates and media watchdogs are already making noises in Washington about a potential Comcast-NBC Universal combination. Malone told Reuters that DirecTV will have a "point of view" on the as yet unannounced deal. It is rare for a rival media mogul to speak out against a deal, particularly one who has such disdain for government involvement in business. We were unsuccessful in an effort to reach Malone to see if he is really worried about the deal or if his remarks were taken out of context.

While it is unlikely that other media companies will publicly criticize the deal, that doesn't mean they don't have other ways in which to make their presences felt. Often they form alliances behind the scenes in an effort to sway regulators without leaving fingerprints. One of the more amusing examples of this was when News Corp. Chairman Rupert Murdoch lobbied the National Religious Broadcasters to make noise against a proposed merger of satellite broadcasters EchoStar and DirecTV in 2002. Murdoch wanted DirecTV for himself (and later got it, only to eventually sell it). The Wall Street Journal reported how Murdoch went to the annual NRB convention in Nashville to try to get them involved his fight and even joined a prayer circle while there.

Odds are that the shrewd Malone wants something out of Comcast or NBC and this is his way of making his presence felt. He's already in a little battle with Comcast over the cable giant's sports network Versus, which DirecTV has stopped carrying because of a feud over money. Don't be surprised if Malone's  objections fade after some backroom deal gets done. It's not exactly Chinatown, but this is how business is done in D.C.

-- Joe Flint

Image: John Malone. Credit: Andrew Gombert / European Pressphoto Agency

Strange bedfellows: Michael Moore and John Malone

He's been called a bully and a monopolist. Al Gore once labeled him "Darth Vader." The Wall Street Journal described him as "ruthless" and alleged "self-dealing" in a maze of complicated business transactions.He is a master of the tax-free deal, completely disdains government and most federal regulations, and has expressed a fondness for Rush Limbaugh. This summer he was slapped with a $1.4-million fine by the Justice Department for illegal stock purchases.

Sounds like the perfect target for a hard-hitting Michael Moore documentary, no? But no, we're talking about Moore's latest sugar daddy: cable mogul John Malone. 

That's right, Moore's "Capitalism: A Love Story" is being co-financed and distributed domestically by Overture Films, which is a unit of Malone's Liberty Media. Moore, who has been railing against Big Media during press junkets promoting the movie, is in bed with the Goldman Sachs of the media world. Liberty also owns satellite broadcaster DirecTV, a stake in satellite radio operator Sirius XM, a big chunk of Barry Diller's IAC/InterActiveCorp, the Atlanta Braves and a piece of the Denver Nuggets. Malone, who is considered the father of the modern-day cable industry, himself has a piece of cable programming giant Discovery Communications, on whose board he sits.

Obviously there is a little something ironic about Moore's screed against capitalism being backed in part by one of the country's richest and most avowed capitalists. Then again, Moore is nothing if not a paradox. Although he still keeps close ties to his home state of Michigan and has positioned himself as the voice of the common man, Moore is also a shrewd negotiator when it comes to his own vested financial interests. On his last film, "Sicko," he received half of the documentary's gross profit, as detailed in this Los Angeles Times piece. He doesn't mind the perks that can come with being a big-shot moviemaker, such as the five-star hotel and the fancy car service.

Interestingly, while Moore likes the perks that come with fame almost as much as he loves being America's gadfly, Malone keeps a very low profile. Although he's amassed a huge fortune, he is not flashy. He's been known to go home for lunch with his wife and once told the New Yorker that although his children will not go wanting in this world, he plans to leave the bulk of his estate to charity.

Moore, through a spokesman, isn't making any apologies for having one of Malone's companies as a backer of his film. "The movie is about HOW people make their money, and specifically criticizes the beast, our out-of-control economic system. ...  And for those folks who make their money in ways that don't exploit or hurt others, then they should be giving a lot more back in tax dollars to help support a more just and fair society. People like John Malone, myself and others who have been blessed, we all ought to be in a 70% tax bracket with the money being used to provide such important services as a real universal and affordable single-payer healthcare system."

We're not sure how Malone would feel that he "should be giving a lot more back in tax dollars to help support a more just and fair society," but we're confident he's hoping Moore's movie will do well enough at the box office to make a decent return on Overture's investment.

-- Joe Flint

Photos: Top, Michael Moore. Credit: Chris Pizzello / Associated Press. Bottom, John Malone. Credit: Nati Harnik / Associated Press.