Ownership Submission

FORM 4

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:

3235-0287

Estimated average burden hours per response...

0.5

(Print or Type Responses)

1. Name and Address of Reporting Person ^*

MALONE JOHN C

2. Issuer Name and Ticker or Trading Symbol
LIBERTY MEDIA CORP [LSTZB]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

__X__ Director	__X__ 10% Owner
__X__ Officer (give title below)	_____ Other (specify below)
Chairman of the Board

(Last)

(First)

(Middle)

12300 LIBERTY BLVD.

3. Date of Earliest Transaction (Month/Day/Year)
09/16/2010

(Street)

ENGLEWOOD, CO 80112

4. If Amendment, Date Original Filed(Month/Day/Year)

6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

(City)

(State)

(Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1.Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Series B Liberty Starz Common Stock	09/16/2010		M		229,708	A	$ 31.63	2,305,420	D
Series B Liberty Starz Common Stock								68,188 ⁽¹⁾	I	By Spouse
Series A Liberty Starz Common Stock	09/16/2010		F		84,056	D	$ 62.65	18,239	D
Series A Liberty Starz Common Stock								30,100 ⁽¹⁾	I	By Spouse
Series A Liberty Starz Common Stock								66	I	By Trust ⁽²⁾
Series A Liberty Starz Common Stock								513 ⁽³⁾	I	By 401(k)Savings Plan
Series A Liberty Interactive Common Stock	09/16/2010		F		189,562	D	$ 12.43	2,153,229	D
Series A Liberty Interactive Common Stock								376,260 ⁽¹⁾	I	By Spouse
Series A Liberty Interactive Common Stock								1,000,825	I	By Trust ⁽²⁾
Series A Liberty Interactive Common Stock								790,000	I	By Trust ⁽²⁾
Series A Liberty Interactive Common Stock								7,259 ⁽³⁾	I	By 401(k)Savings Plan
Series A Liberty Capital Common Stock	09/16/2010		F		48,067	D	$ 49.02	2,220,511	D
Series A Liberty Capital Common Stock								75,252 ⁽¹⁾	I	By Spouse
Series A Liberty Capital Common Stock								165	I	By Trust ⁽²⁾
Series A Liberty Capital Common Stock								257,000	I	By Trust ⁽²⁾
Series A Liberty Capital Common Stock								546 ⁽³⁾	I	By 401(k)Savings Plan

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
	Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.		SEC 1474 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security
(Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code
(Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date
(Month/Day/Year)

7. Title and Amount of Underlying Securities
(Instr. 3 and 4)

8. Price of Derivative Security
(Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)

11. Nature of Indirect Beneficial Ownership
(Instr. 4)

Code

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Stock Option (right to buy)

$ 31.63

09/16/2010

229,708

⁽⁴⁾

02/28/2011

Series B Liberty Starz Common Stock

229,708

$ 0

Reporting Owners

Reporting Owner Name / Address	Relationships
Reporting Owner Name / Address	Director	10% Owner	Officer	Other
MALONE JOHN C 12300 LIBERTY BLVD. ENGLEWOOD, CO 80112	X	X	Chairman of the Board

Signatures

/s/ John C. Malone by Charles Y. Tanabe, Attorney-in-fact		09/17/2010
^**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	The Reporting Person disclaims beneficial ownership of these shares owned by his spouse.
(2)	The Reporting Person is the sole trustee of, and with his spouse retains a unitrust interest in, the trusts.
(3)	The number of shares represents equivalent shares based on the fair market value of the shares of Series A Liberty Capital Common Stock, Series A Liberty Interactive Common Stock, and Series A Liberty Starz Common Stock held by the unitized stock fund under the Issuer's 401(k) Savings Plan based on a report from the Plan Administrator dated as of August 31, 2010. The Reporting Person has an interest in the unitized fund, which holds shares of Series A Liberty Capital Common Stock, Series A Liberty Interactive Common Stock, Series A Liberty Starz Common Stock and short-term investments.
(4)	100% of the options exercised were exercisable on the transaction date.
Remarks: The trading symbols for the Issuer's Series A and Series B Liberty Starz common Stock are LSTZA and LSTZB, respectively. The trading symbol for the Issuer's Series A Liberty Interactive Common Stock is LINTA and Series A Liberty Capital Common Stock is LCAPA.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.