As a startup network, Starz endured major losses during its early years, with total deficits topping US$203 million and annual losses of US$150 million by 1997. It was predicted to lose an additional US$300 million in revenue before it was predicted to break even. Partly in an effort to get the network's substantial losses off its books, TCI announced a deal on June 2, 1997, in which it transferred majority ownership of the corporate entity that operated Starz, Encore Media Group, to sister company Liberty Media; TCI retained a 20% minority ownership interest in Encore Media Group. Liberty Media assumed the former company's stake in the subsidiary in 1999, following TCI's merger with AT&T Corporation.