Liberty Digital (LDIG) was up 20.6% in preopen Island trading. After the close Friday, parent company Liberty Media (LMG) announced plans to acquire all the shares of Liberty Digital that it does not already own.

Under the deal, Liberty Digital shareholders would receive 0.25 class A shares of Liberty Media, or about $3.09 per share based on Friday's closing price. Liberty Digital closed Friday at $2.82.

Liberty Digital is involved in interactive programming and online content ventures. Liberty Media holds interests in video programming, communications, technology and Internet businesses.