Newark, NJ, & Englewood, Colorado, December 21, 2004 - Liberty Media Corporation and IDT Corporation today announced that Liberty Media will exchange all of its direct and indirect interests in Net2Phone for (3,754,480) newly-issued shares of IDT Class B Common Stock. At the close of this transaction, IDT will own 41.2% of the equity of Net2Phone and have voting control. Liberty Media will own 17.2% of IDT Corp.
"With this one transaction, IDT brings itself closer both to Net2Phone, the company it created nearly a decade ago and the leader of the Voice over Internet Protocol (VoIP) revolution, and to Liberty Media, a great strategic partner," said Jim Courter, IDT's CEO.
"The share exchange simplifies Liberty Media's ownership interests in IDT and Net2Phone," said Mark Carleton, Senior Vice President of Liberty Media. "Liberty Media remains committed to working with Net2Phone through IDT as both companies continue to deploy advanced communications services around the world."
The transaction is subject to antitrust review and other customary closing conditions.
Liberty Media Corporation (NYSE: L, LMC.B) is a holding company owning interest in a broad range of electronic retailing, media, communications and entertainment business classified in three groups; Interactive, Networks and Tech/Ventures. Liberty's business includes some of the world's most recognized and respected brands and companies, including QVC, Encore, Starz, Discovery, IAC/InteractiveCorp, and News Corporation.
IDT Corporation, through its IDT Telecom subsidiary, is a facilities-based, multinational carrier that provides a broad range of telecommunications services to retail and wholesale customers worldwide. IDT Telecom, by means of its own international telecommunications backbone and fiber optic network infrastructure, provides its customers with integrated and competitively priced international and domestic long distance and domestic all-distance telephony and prepaid calling cards. IDT Entertainment is the IDT subsidiary focused on developing, acquiring, producing and distributing computer-generated and traditionally animated productions and other productions for the film, broadcast and direct-to-consumer markets. IDT Capital is the IDT division principally responsible for the Company's initiatives in radio broadcasting, brochure distribution and new video technologies. Net2Phone, Inc., a subsidiary of IDT Corporation, is a leading provider of high-quality global retail Voice over IP services and offers a fully outsourced cable telephony service to cable operators allowing cable operators to provide residential phone service to their subscribers.
IDT Corporation's Class B Common Stock and Common Stock trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C, respectively.
Net2Phone provides VoIP PacketCable, SIP and wireless solutions around the world. As leaders in enabling telecom service providers and cable operators with turn-key hosted VoIP telephony services, Net2Phone has routed billions of retail VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands of more overseas. Net2Phone's hosted SIP platform provides partners with residential broadband telephony, calling cards, prefix dialing and enterprise services in over 100 countries.
Net2Phone's PacketCable platform provides cable operators with the ability to deliver a primary line replacement service with guaranteed QoS and features such as E911. Net2Phone's common stock trades on the NASDAQ under the ticker symbol NTOP. For more information about Net2Phone's products and services, please visit
Important Note: In this press release, all statements that are not purely about historical facts, including, but not limited to, those include the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent IDT's current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in IDT's most recent report on SEC Form 10-K (under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K and other filings IDT may make with the SEC.