Cendant, Liberty Media Agree to Net Ventures

Cendant Corp.
Thursday joined forces with Liberty
Media Corp.
to develop Internet services for Cendant’s travel,
mortgage, real estate and membership businesses.

Liberty Media (LMG) has agreed to purchase 18 million shares of Cendant (CD)
stock worth $400 million and two-year warrants to purchase approximately 29
million shares of Cendant stock at $23 per share.

Cendant will assist Liberty Media in creating a new venture that will seek
to provide broadband video, voice and data content to Cendant hotels and
their guests on a worldwide basis. The two companies will also pursue
opportunities within the cable industry to leverage Cendant’s direct
marketing resources and capabilities.

Liberty Media Chairman, John C. Malone will also join Cendant’s board of
directors.

“Cendant’s group of assets is a terrific platform for developing new
businesses. We are excited by the prospect of working with Cendant’s
management to explore opportunities for combining the resources of
Liberty’s affiliated companies and
the Cendant businesses to create value for all of our shareholders,”
said Robert Bennett, Liberty Media’s president and chief executive officer.

Liberty Media Corp. produces, acquires and distributes entertainment and
informational programming services, as well as electronic retailing
services, through subsidiaries and affiliates. In October, the company
spent $425 million in acquiring nearly a third of satellite venture
Astrolink. Comparable in sum and goals to its deal with Cendant, Liberty
Media also invested in Astrolink to tap into the broadband distribution market.

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