• by Wayne Friedman , August 8, 2005

Liberty Media Chairman John Malone Friday said it doesn't appear that Liberty will be reducing its stake in Rupert Murdoch's News Corp. any time soon--at least by the end of 2005. Although both sides continue to have talks, Malone said the parties couldn't identify a transaction that would be a win-win for all parties concerned--the Murdochs, News Corp., and Liberty Media.

Liberty stake in News Corp. doubled to 18 percent last year. As a response, News Corp. has been looking for a strategy to block Liberty or other shareholders, with the exception of the Murdochs, from increasing their stake in News Corp. Malone would like News Corp. to expand its share buyback program, now set at $3.5 billion--which would help relieve some of Liberty's burden.

Also on Friday, Liberty reported that its second-quarter loss narrowed to $107 million from a year-earlier loss of $314 million. Gains at home-shopping channel QVC and Starz Entertainment Group were the key movers for the company. Liberty¹s revenue rose 12 percent to $2 billion.