8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                         Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

        Date of Report (date of earliest event reported): AUGUST 24, 2006

                            LIBERTY MEDIA CORPORATION
             (Exact name of registrant as specified in its charter)

           DELAWARE                      000-51990                84-1288730
- -------------------------------         ------------         -------------------
(State or other jurisdiction of         (Commission           (I.R.S. Employer
 incorporation or organization)         File Number)         Identification No.)

                               12300 LIBERTY BLVD.
                            ENGLEWOOD, COLORADO 80112
              (Address of principal executive offices and zip code)

       Registrant's telephone number, including area code: (720) 875-5400


          (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[  ] Written communications pursuant to Rule 425 under the Securities Act (17
     CFR 230.425)

[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
     CFR 240.14a-12)

[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))



ITEM 7.01.  REGULATION FD DISCLOSURE

On August 24, 2006, Liberty Media Corporation ("Liberty") issued a press release
announcing that it and IDT Corporation ("IDT") had completed the first stage of
the previously announced acquisition by Liberty of IDT's Entertainment Division.
The closing encompasses all of IDT Entertainment's U.S. and certain
international operations. The parties expect that the remainder of the
transaction comprising IDT Entertainment's Canadian and Australian operations
will occur in the next several weeks. IDT Entertainment will be combined with
Liberty subsidiary Starz Entertainment Group and will be attributed to the
Liberty Capital Group.

This Form 8-K and the press release attached hereto as Exhibit 99.1 are being
furnished to the SEC under Item 7.01 of Form 8-K in satisfaction of the public
disclosure requirements of Regulation FD.




                                    SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

Date: August 25, 2006

                                        LIBERTY MEDIA CORPORATION


                                        By: /s/ CHRISTOPHER W. SHEAN
                                            ------------------------------------
                                            Name:  Christopher W. Shean
                                            Title: Senior Vice President
                                                      and Controller

EX-99.1

                                                                    EXHIBIT 99.1

FOR IMMEDIATE RELEASE
AUGUST 24, 2006

                     LIBERTY MEDIA, IDT CLOSE FIRST STAGE OF
                    LIBERTY ACQUISITION OF IDT ENTERTAINMENT


Englewood, CO and Newark, NJ -- Liberty Media Corporation (NASDAQ:LINTA, LCAPA)
and IDT Corporation (NYSE: IDT, IDT.C) announced today that they have completed
the first stage of the previously announced acquisition by Liberty of IDT's
Entertainment Division. Today's closing encompasses all of the U.S. and certain
international operations. The parties expect that the remainder of the
transaction comprising the sale of the Canadian and Australian operations will
occur in the next several weeks after certain regulatory approvals have been
obtained and customary closing conditions have been satisfied. IDT's
Entertainment Division will be combined with Liberty subsidiary Starz
Entertainment Group and will be attributed to the Liberty Capital Group.

"Joining IDT Entertainment and Starz will allow both to benefit and grow as part
of an integrated media organization with substantial programming production
capabilities and access to all distribution outlets," said Liberty president and
CEO Gregory B. Maffei. "And this transaction advances our strategy of converting
passive assets into operating business units."

"In a few short years, IDT Entertainment grew from a start-up to a producer and
distributor of first class animated and live action programming," said Jim
Courter, CEO of IDT Corporation. "The next phase of its development will be
directed by Liberty Media, a company with a record for realizing the potential
of media and entertainment assets."

Liberty Media Corporation is a holding company that owns interests in a broad
range of electronic retailing, media, communications and entertainment
businesses. Those interests are attributed to two tracking stock groups: the
Liberty Interactive group, which includes Liberty's interests in QVC, Provide
Commerce, IAC/InterActiveCorp and Expedia, and the Liberty Capital group, which
includes all of Liberty's assets that are not attributed to the Liberty
Interactive group, including Liberty's interests in Starz Entertainment Group
and News Corporation.

Starz Entertainment Group LLC (SEG) is a premium movie service provider
operating in the United States. SEG offers 16 movie channels including the
flagship Starz(R) and Encore(R) brands with approximately 14.6 million and 26.4
million subscribers respectively. Starz Entertainment Group airs more than 1,000
movies per month across its pay TV channels and offers advanced services
including Starz HDTV, Starz On Demand



and Vongo(SM). Starz Entertainment Group is a wholly-owned subsidiary of Liberty
Media Corporation that is attributed to Liberty Capital Group. WWW.STARZ.COM.

IDT Corporation ("IDT") is a multinational company that operates its businesses
through its subsidiary divisions. Through its Telecom subsidiary, IDT provides
telecommunications services worldwide to the retail and wholesale markets. IDT's
Capital division incubates newer businesses, and the company's Spectrum
subsidiary holds its spectrum license assets. IDT Telecom provides retail and
wholesale telecommunications services and products, including pre-paid and
rechargeable calling cards, consumer local, long distance, and wireless phone
services, and wholesale carrier services. Through IDT's recent purchase and
integration of Net2Phone, the company also provides a range of voice over
Internet protocol (VoIP) communications services. IDT Capital's operations
include an Energy Services Company (ESCO) in New York State, brochure
distribution and other smaller initiatives. 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.

Liberty Media Contact: John Orr (720) 875-5622
Starz Contact: Tom Southwick (720) 852-5821
IDT Contact: Gil Nielsen (973) 438-3553