Operator
Your next question comes from [James Raco] - Barclays Capital.
James Raco - Barclays Capital
I had two on LMDIA and one on LCAPA.
On LMDIA, after ELI spins what are your thoughts on the stub? Does it make sense for it to be stand-alone or should we really roll back in?
And secondly, is there any tax or regulatory restriction on announcing the terms of an LMDIADTV deal before the Entertainment spin actually takes place?
And on LCAPA, with a lot of liquidity now, the Sprint hedge is maturing in 2009 - 2010. You mentioned sort of a number of possible options. Can you talk about how you think about using that liquidity among acquisitions, share repurchase or maybe buying back some of the exchangeable debt?
Greg Maffei
On the LEI spin what happens to what effectively will be Starz, cash and the wild blue equity, we will see where it trades. We have no announced plan. It will be a relatively small public company. It will be relatively hard to know what its strategic direction is. We think there's a lot of positive things that are happening in Starz, but we'll see whether that should ultimately be a publicly traded tracker or whether it more appropriately belong recombined in some way. Stay tuned. No decision.
On a question of could you announce merger terms with DIRECTV prior to completing the spin, I believe you could. You would be subject to ensure non-taxability, a whole bunch of [inaudible], probably the most important of which is Morris Trust, which would say that our shareholders have 51% of vote and value in any post-spin merge combination. Albert Rosenthal is giving me the nod that I've got that right, and we're very cognizant of that. But frankly, if you look at the economic value in any kind of combination, we probably would not accept any deal that had less than 51% of vote and value, so that probably is not a restraining factor as a practical matter.
Last question on Starz, we will have a fair amount of liquidity at Starz. We have a fair amount of liquidity now - excuse me, LCAPA. We do at Starz as well, but at LCAPA - thank you; I meant LCAPA - and the Sprint collar's maturing will only further enhance that.
We will look for deals like SIRIUS XM. We will consider debt repurchase. We are noteworthy of the five and five deal that got approved in the stimulus bill that for five years you will not recognize any COD income on a debt repurchase, and then you will recognize it ratably over the next five years. On a present value basis that's quite attractive in terms of changing the dynamics of debt repurchase for Liberty. And there frankly may be some other things that happen in how that bill is interpreted that make it more opportunistic for us or more realistic for us to look at even attacking some of our exchangeables. We are working through that. Stay tuned on that as well.
And lastly, as I noted, we shrunk about 26% of the equity of LCAPA. We consider that equity undervalued. The potential to repurchase more of that is also on the table.
So all three things, to answer, are things we have already executed on in the way to debt repurchase that gets better in a post-stimulus bill through attractive and, in this case debt, focused with warrant kicker investment in the case of SIRIUS XM or a share repurchase in the case of the shrink we've already done. All three could potentially be attractive.