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[LOGO OF LIBERTY DIGITAL]
Exhibit 99.1
FOR IMMEDIATE RELEASE
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LIBERTY DIGITAL, SONY PICTURES ENTERTAINMENT TEAM UP
TO CREATE TELEVISION'S FIRST 24-HOUR INTERACTIVE NETWORK
Liberty Digital to Acquire 50% Stake in Sony's Game Show Network
Game Show Network to Become the World's First 24-Hour
Game-Based Interactive TV Network
LOS ANGELES, August 21, 2000--Liberty Digital, Inc. (Nasdaq: LDIG) and Sony
Pictures Entertainment (SPE) announced today that they are teaming up to turn
SPE's Game Show Network (GSN) into the first `round-the-clock', fully
interactive, game-based television network.
Liberty Digital, a leading player in emerging interactive television, will
acquire a 50% stake in Game Show Network for $225 million in cash and $50
million in Liberty Digital stock. The transaction is subject to execution of
definitive agreements, as well as other customary conditions to closing and is
anticipated to close in the fourth quarter of 2000. Both companies intend to
work to strengthen GSN and position it as the premier TV programming service
dedicated exclusively to games, game playing and game shows 24-hours a day.
Partnering with Liberty Digital underscores SPE's commitment to develop new
digital services for the broadband entertainment era. Since its creation in
December 1994, GSN has aggressively sought to apply new technology to the
inherent desire of TV viewers to "play along" with game shows. Offering its
audience a wide variety of original programming, GSN currently airs more hours
of interactive game play than any other television or cable network.
"Games represent one of the great potential applications of the digital set-top
box, and it has always been one of the primary categories in which we intended
to focus our interactive television initiatives," said Lee Masters, president
and CEO of Liberty Digital. "Sony Pictures Entertainment's sheer breadth and
depth in film, television, new media and content creation make them the ideal
partner for us. Additionally, Sony Pictures Entertainment and our majority
shareholder Liberty Media Corporation have had a history of great partnerships
together, including Telemundo and a film output deal with STARZ! Encore. We are
excited to be embarking with them on this new enterprise."
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Liberty Digital, Sony Pictures Entertainment Team Up Page 2
To Create Television's First 24-Hour Interactive Network
"We are thrilled to be working on this important project with Liberty Digital, a
pioneering influence in interactive television," said Len Grossi, president of
SPE's Columbia TriStar Television division, which oversees GSN. "At SPE, we are
assembling a powerful array of interactive game and content assets which include
Game Show Network and the top syndicated game shows in the world, Wheel of
Fortune and Jeopardy!. We anticipate exploring other opportunities with the
Liberty family."
"Substantial subscriber growth and increased consumer marketing have helped Game
Show Network make a definitive impact on cable operators, customers and
advertisers," said Michael Fleming, president of SPE's Game Show Network. "We
have grown an unprecedented 9.9 million households in the past year, reaching
over 29 million subscribers via cable and satellite. With Sony Pictures
Entertainment's continued support and Liberty Digital's experience, we will
bolster Game Show Network's leadership in interactive entertainment."
Liberty Digital President and CEO Lee Masters will be hosting a conference call
with SPE's President of Columbia TriStar Television division Len Grossi at 10:00
A.M. EST. The dial-in number for the conference call is 212-896-6040.
About Game Show Network
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Game Show Network, a Sony Pictures Entertainment company, is the premier
programming service exclusively dedicated to the exciting world of games, game
playing and game shows. Each day, the Game Show Network offers a wide array of
programming including game show favorites from its diverse library and new
interactive game shows where viewers can become contestants in their own homes.
Game Show Network can be found on the World Wide Web at
http://www.gameshownetwork.com.
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About Sony Pictures Entertainment
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Sony Pictures Entertainment (SPE) is a division of Sony Corporation of America
(SCA), a subsidiary of Tokyo-based Sony Corporation. SPE's global operations
encompass motion picture production and distribution, television production and
distribution and domestic and international syndication, worldwide channel
investments, home video acquisition and distribution, operation of studio
facilities, development and new entertainment products, services and
technologies and distribution of filmed entertainment in 67 countries. Sony
Pictures Entertainment can be found on the World Wide Web
http://www.spe.sony.com.
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About Liberty Digital, Inc.
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Liberty Digital, Inc. is a diversified new media company with investments in e-
commerce, Internet content and interactive television businesses. Liberty
Digital's Series A common stock is traded on the NASDAQ National Market under
the symbol LDIG.
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Liberty Digital, Sony Pictures Entertainment Team Up Page 3
To Create Television's First 24-Hour Interactive Network
This press release contains forward-looking statements which are made pursuant
to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of
1995. Words such as "intends," "believes" and similar expressions reflecting
something other than historical fact are intended to identify forward-looking
statements, but are not the exclusive means of identifying such statements.
These forward-looking statements involve a number of risks and uncertainties,
including the execution of definitive documentation relating to the acquisition,
the closing of the transaction, the timely development and market acceptance of
GSN's interactive programming and other factors. These statements are also
based upon a number of assumptions and estimates which are inherently subject to
uncertainties and contingencies, many of which are beyond the control of the
parties, and reflect future business decisions which are subject to change.
Some of these assumptions may not materialize, and unanticipated events will
occur which can affect GSN's results. The parties undertake no obligation to
revise or update any forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release.
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Contacts for Liberty Digital, Inc.: Contact for Game Show Network:
Jeff Majtyka ([email protected]) Carrie Gerlach (310) 244-8897
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Ryan Barr ([email protected]) (Carrie [email protected])
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Brainerd Communications, Inc. (212) 986-6667
