Liberty Split-Off For DirecTV Deal To Be Tax-Free: IRS

Law360, New York (October 27, 2009, 6:47 PM EDT) -- Liberty Media Corp. has secured a key approval from the Internal Revenue Service, verifying that the split-off of its Liberty Entertainment unit ahead of a proposed merger with DirecTV Group Inc. will be a tax-free transaction.

Liberty Media Corp. said Tuesday it had received a so-called private letter ruling from the IRS related to the tax treatment of certain elements of the split-off of the unit, which will be combined with DirecTV.

DirecTV Group and Liberty Entertainment plan to merge in a deal that would make...
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