DALLAS, LOS ANGELES and ENGLEWOOD, Col., February 5, 2002— Hicks, Muse, Tate & Furst Incorporated (‘HMTF’), of Dallas, Fox Sports International (‘FSI’), of Los Angeles, and Liberty Media Corporation (‘Liberty’)(NYSE: L, LMC.B), of Englewood, Colorado, today announced an agreement to combine certain of their interests in sports programming enterprises serving Latin America and the growing United States Spanish-language markets through a new holding company to be known as Fox Pan American Sports LLC. The new venture will have corporate headquarters in Coral Gables, Florida and dual operational headquarters in Buenos Aires, for South and Central America, and in Los Angeles, for North America.
Specifically, HMTF will contribute to the venture access to significant sports programming rights held through its Pan-American Sports Holdings (‘PSH’) investments, including exclusive rights to Copa Libertadores, the most popular regional soccer competition, among other assets. Fox Sports International will contribute its interests in the Fox Sports Latin America network serving 10.6 million subscribers across 18 South and Central American nations outside Brazil, as well as the 4.6 million subscriber-strong Fox Sports World Espanol Spanish-language sports network in the United States, among other interests. All three partners will also contribute an undisclosed amount of cash toward future operations.
This new venture will offer Pan-American sports fans and marketers top sports programming ranging from Copa Libertadores, Argentine, Chilean, Mexican, Italian Cup and English Premier League soccer, National Football League and Major League Baseball games, Caribbean Winter League baseball, and top golf events from the PGA Tour and tennis from the ATP Tour. Fox Sports International will continue to manage Fox Sports World Espanol on a day-to-day basis, while also contributing production, technical and sales support to the venture’s Latin American interests; primarily those situated across Mexico, the Caribbean and Central America. Both Fox Sports Latin America and Fox Sports World Espanol will retain their names and associated branding throughout the region.
Given the existing distribution of these channels and the strength of their new programming, FSLA and FSWE will be well-positioned to capture new pay-per-view and premium product opportunities in both Latin America and the United States, as well as provide a significantly enhanced basic product offering to its customers.
Thomas O. Hicks, Chairman and CEO of Hicks, Muse, Tate & Furst, said: ‘We believe that joining forces with Fox Sports International and Liberty Media in this partnership, and pooling our strengths in sports programming and sports rights, is the best way to preserve and build value for our respective investors during these tough economic times for the entire Latin American region. In addition, Fox’s existing presence in the U.S. Hispanic market and PSH’s must-carry programming position this venture to pursue the major opportunity represented by the dynamic and rapidly growing U.S. Hispanic market.’
Commented Fox Sports International President Bob Thompson, ‘We are very enthusiastic about entering into a partnership with as respected and powerful programming and distribution partners as Hicks, Muse, Tate & Furst and Liberty Media. Sports fans throughout South, Central and North America, as well as the Caribbean, have always ranked among the world’s most devoted and deserving, and now this venture can provide the kind of operational breadth to truly satisfy their increasing demands.’
Gary Howard, Liberty Media Executive Vice President and Chief Operating Officer, stated: ‘The rationalization of sports programming businesses in Latin America represents an opportunity for Liberty Media to create better services for television viewers while maintaining our focus on enhancing shareholder values in what is a challenging Latin America economic environment. In addition, we see this combination as an opportunity to build a platform to capitalize on the expanding U.S. Spanish-speaking market. Liberty Media, with our long-time partners HMTF and Fox Sports International, is excited to be able to offer premier Latin America soccer and other sports programming to Spanish-language audiences in North and South America.’
Messrs. Hicks, Thompson and Howard will each serve on the Board of Directors of Fox Pan American Sports LLC, and Eric C. Neuman, a HMTF partner, will serve as Chairman.
Since its formation in 1989, HMTF has completed or currently has pending more than 400 transactions with a total capital value of $50 billion. Headquartered in Dallas, the firm also has offices in London, New York and Buenos Aires.
Based in Los Angeles, Fox Sports International is an international sports programming and production entity housed within the Fox Cable Networks Group, one of the major operating units within the Fox Entertainment Group (NYSE: FOX) and News Corporation (NYSE: NWS).
Liberty Media Corporation holds interests in a broad range of domestic and international video programming, communications, technology and Internet businesses.
For more details contact:
Hicks, Muse, Tate & Furst Incorporated
Roy Winnick or Mark Semer
Kekst and Company
212-521-4842 or 4802
Fox Sports International
Tom Tyrer or Kelsey Martinez
310-286-6333 or 310-874-0441 (Mobile)
Liberty Media Corporation
Mike Erickson
877-772-1518