Liberty Media Corp. is taking back the stock it traded to Comcast Corp. for QVC Inc. only 10 months ago.
In a "cash, stock and other considerations" deal, Liberty will get Comcast's 120.3 million shares. In exchange, it will pay $543 million in cash, plus 100% of the stock of holding company Encore ICCP, which contains Liberty's 10.4% stake in E! Entertainment Television and 100% of International Channels Networks, but does not include Liberty's interest in Starz! Encore.
Liberty has also agreed to drop litigation against Comcast over a TCI Music agreement Comcast inherited when it bought AT&T Broadband in November 2002. Had Liberty continued to pursue the suit and won, Comcast would potentially have had to pay it $18 million a year (plus inflation) through 2017.
With the additional Liberty stake, Comcast now owns 60.5% of E! (Disney owns the balance).
The agreement will not be a done deal until it gets the OK from regulators, but it is expected to close in the third quarter.