NEW YORK (CNNfn) - IDT Corp. on Monday announced that programming services company Liberty Media Group has agreed to buy about 9.9 percent of the telecommunications services company for about $130 million in cash.|
IDT (IDTC: Research, Estimates), a Hackensack, N.J.-based provider of international and domestic long-distance telephone, Internet access, and Internet telephony services, will issue and sell to Liberty Media (LMG.A: Research, Estimates) 3,775,000 shares of IDT's common stock at a price of $34.50 per share.
"We are excited about this opportunity to expand our strategic interests in telecommunications, Internet telephony and Internet services," said Robert Bennett, president and chief executive of Englewood, Colo.-based Liberty, which is a subsidiary of AT&T (T: Research, Estimates).
In addition to this investment, Liberty Media will have the right to nominate a director for election to IDT's board.
Liberty Media has agreed not to sell its IDT shares for a period of one year after the closing of the sale, and will receive certain registration rights with respect to such shares.
IDT shares rose after the news was released, climbing 2-9/16 to 34.50 on Nasdaq. Shares of Liberty Media rose 7/8 to 57-3/4 on Monday afternoon.