• by Wayne Friedman , November 12, 2007

Liberty Media Corp's chairman John Malone said there was a 'mild disagreement' with IAC/InterActiveCorp's chairman Barry Diller in how IAC would be broken up into five different units.

Malone was speaking last week with analysts during an earnings phone call. Liberty owns a 57% voting interest in IAC, with its part of Liberty's Liberty Interactive Group.

Malone said it could take up to six months to work the details, including how Liberty's relationship will exist in the new IAC. Liberty's home shopping channel, QVC, competes directly with HSN, IAC's home shopping network. HSN will be spun off from IAC.

In announcing its third-quarter earning results, Liberty Interactive, which also comprises home shopping network QVC, showed an uptick of 3% to $1.2 billion in revenues--but operating income was off 10% to $231 million. Much of the home shopping channel's troubles were from lackluster demand on gold jewelry and home products, especially in the United States, Germany and Japan.

At its Liberty Capital Group, where its pay cable channels Starz and Encore reside, revenue climbed 11% to $282 million. Starz operating income virtually doubled to $78 million from $40 million a year ago.

Starz witnessed a 7% improvement in its number of subscribers; Encore gained 9%. During the third quarter, Starz entered into a new affiliation agreement with DirecTV that is retroactive to January 1, 2007, and extends through the end of 2007.

Liberty Media agreed to acquire News Corp.'s DirecTV, the satellite-distributed TV programmer, which will be a part of a third, separately traded Liberty division.