<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
Filed by the Registrant [X]
Filed by a Party other than the Registrant [_]
Check the appropriate box:
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Rule 14a-6(e)(2))
[_] Definitive Proxy Statement
[X] Definitive Additional Materials
[_] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12
Tele-Communications, Inc.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
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or Item 22(a)(2) of Schedule 14A.
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14a-6(i)(3).
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
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pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
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(5) Total fee paid:
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[X] Fee paid previously with preliminary materials.
[_] Check box if any part of the fee is offset as provided by Exchange
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was paid previously. Identify the previous filing by registration statement
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Notes:
<PAGE>
EXPLANATORY NOTE
The following materials will be used in connection with presentations to be
made by Tele-Communications, Inc. (the "Company") to certain large institutional
investors and analysts regarding the Liberty Media Group and the TCI Group. The
Liberty Media Group and the TCI Group would be created as a result of the
implementation of the Liberty Media Group Stock Proposal, which is to be voted
upon at the Company's annual meeting of stockholders to be held August 3, 1995.
<PAGE>
[LOGO OF TCI APPEARS HERE]
Tele-Communications, Inc.
-------------------------
LIBERTY MEDIA GROUP + TCI GROUP > TCI
Tele-Communications, Inc.
<PAGE>
The Process
<TABLE>
<CAPTION>
<S> <C>
- -----------------------------------------------------------------------
Distribution: Pro rata dividend
- -----------------------------------------------------------------------
Securities: Liberty Media Group Common Stock
Series A
Series B
- -----------------------------------------------------------------------
Distribution Ratio: 1 Share of Liberty for every 4 of TCI
- -----------------------------------------------------------------------
Timing: Record Date for Vote June 9
Shareholder Meeting August 3
Record Date for
Securities Distribution August 4
- -----------------------------------------------------------------------
Pre-Distribution Shares TCOMA: 571 million*
Outstanding: TCOMB: 85 million
- -----------------------------------------------------------------------
Post Distribution Shares TCOMA: 571 million*
Outstanding: TCOMB: 85 million
LBTYA: 143 million*
LBTYB: 21 million
*Plus convert allocations
- -----------------------------------------------------------------------
</TABLE>
Tele-Communications, Inc.
<PAGE>
Principal Provisions Of Security
Merger
Sale
Redemption
Tele-Communications, Inc.
<PAGE>
Reasons For New Groups, Securities
Greater Market Recognition of Values
Greater Capital Flexibility
Greater Management and Shareholder Focus
Tele-Communications, Inc.
<PAGE>
Overview Of "New" TCI
TCI positioned to lead global media and telecommunications industry
- ------------------- --------------
SHAREHOLDERS: SHAREHOLDERS:
Liberty Media Group +++++++++++ ++++++++++++++ TCI Group
- ------------------- + + --------------
+ +
-------------------------
TELE-COMMUNICATIONS, INC.
-------------------------
+ +
- ------------------- + ---------
LIBERTY MEDIA GROUP ++++++++ +++++ TCI GROUP ++++
- ------------------- + --------- +
+ + + +
+ + + +
------------ ------------------ ------------------- ---------------
100% 100% 83% 100%
Domestic Domestic Cable and Tele-Communications Technology/
Programming Communications International Venture Capital
------------ ------------------ ------------------- ---------------
Tele-Communications, Inc.
<PAGE>
Financial Data
($ in Millions, Proforma)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
TCI GROUP
- --------------------------------------------------------------------------------
Three Months, Year Ended
Ended March 31, 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
REVENUE $ 1,248 $ 4,710
OCF $ 449 $ 1,969
ASSETS $ 20,740 $ 17,150
DEBT $ 11,582 $ 11,068
SUBSCRIBERS 12,248,000 12,025,000*
* Proforma TeleCable
- --------------------------------------------------------------------------------
</TABLE>
Tele-Communications, Inc.
<PAGE>
Liberty Media
[A montage of logos and names of entities
included in the Liberty Media Group.]
<PAGE>
What Is Liberty?
Pure Programming Play
Outstanding Consumer Franchises
Diverse Group of Public and Private Companies
Businesses in All Stages of Development
Group Dynamics
Active Involvement by Management
A Unique Growth Opportunity
Liberty Media
<PAGE>
Programming Economics
The Power of Brands
-Brand drives consumer demand
-Demand drives distribution
-Distribution and demand drive dual revenue streams
-Opportunities to extend and promote brand
Attractive Economic Model
-Scalable product cost
-Low incremental unit cost
-Dynamics of expanding distribution media and markets
Liberty Media
<PAGE>
Evolution Of A Programming Network
[A graph appears here which illustrates the evolution of a hypothetical
programming network. The "Start Up" portion of the graph indicates that expenses
are relatively high and subscribers and revenues are low during such stage. The
"Developing" portion of the graph indicates that the network approaches and
achieves breakeven during such stage as subscribers and revenues increase. The
"Established" portion of the graph indicates that the number of subscribers and
revenues increase and incremental costs are relatively low during such stage.
The graph also indicates the approximate proportion of networks included in the
Liberty Media Group that are currently considered to be in each of the stages.]
Liberty Media
<PAGE>
Compounding Growth Factors
Internal Growth of Existing Services
Creation of New Services
Additional Revenue Opportunities
Obtaining Synergies
Strategic Acquisitions and Investments
Liberty Media
<PAGE>
Valuation Approaches
<TABLE>
<CAPTION>
STAGE START-UP DEVELOPING ESTABLISHED
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
EXAMPLES: Prime Deportiva Court TV TBS
Cable Health E! Entertainment CNN
Encore Multiplex Encore Discovery Channel
Ingenius SportSouth Family Channel
Premier Sports Prime Network QVC
Network
Starz! The Learning Channel Prime Sports-West
Discovery Asia Discovery Europe Prime Sports-SW
International Cartoon Network Home Team Sports
Channel
Turner Classic Prime Sports-Midwest HSN
Movies
Soap Channel SportsChannel-Pacific SportsChannel-
Chicago
NewSport Sunshine
TNT
BET
- --------------------------------------------------------------------------------
VALUATION
METHOD: Cost Per Subscriber Cash Flow Multiple
- --------------------------------------------------------------------------------
</TABLE>
Liberty Media
<PAGE>
Why You Want To Own Liberty
Prospects for Growth
Pure Programming Play
Outstanding Consumer Franchises
Diverse Group of Public and Private Companies
Businesses in All Stages of Development
Group Dynamics
Active Involvement by Management
Liberty Media
<PAGE>
Liberty Media
[A montage of logos and names of entities included in the Liberty Media Group.]
<PAGE>
TCI Group
<PAGE>
Status Report: Growth Is Back
Improved Regulatory Environment
-Emerging from Rate Reg II
Strong Core Fundamentals in 1995
-Q1 1995 results
New Business: Primestar
-Rapid growth
TCI Group
<PAGE>
Strategy Update: A National
And Local Communications Co.
Right Core Strategy
Power of TCI's Footprint
Incremental Revenue Potential
Competitive Edge
TCI Group
<PAGE>
Capital: Self Generating
Deleveraging Economics
-Fiber, Telephony and Primestar
Expenditures Based on Consumer Demand
-Incremental revenue justifies incremental investment
Adequate Capital
-For expansion and deleveraging
TCI Group
<PAGE>
Other Assets: Value-Creating
Valuable International Business
-Own 83% of Tele-Communications International
Technology Subsidiary
-Own 100% of TCI Technology Ventures
Significant Off-Balance Sheet Assets
-Significant unconsolidated cable subscribers
TCI Group
<PAGE>
Why Buy TCI Group Now
Accelerating Care Cable Growth
Favorable Regulatory Environment
Telephony Opportunity 4X Current Cable Market
Competitively Well Positioned
Low-Cost Service Provider
Capital Available to Participate in New Businesses
Customer Service Focus
Customer Footprint is Key
TCI Group
<PAGE>
[LOGO OF TCI APPEARS HERE]
Tele-Communications, Inc.
-------------------------
LIBERTY MEDIA GROUP + TCI GROUP > TCI
Tele-Communications, Inc.
