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, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
TANABE CHARLES Y
  2. Issuer Name and Ticker or Trading Symbol
Discovery Holding CO [DISC]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Senior Vice President
(Last)
(First)
(Middle)
12300 LIBERTY BLVD.
3. Date of Earliest Transaction (Month/Day/Year)
09/26/2007
(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)
Code V Amount (A) or (D) Price
Series A Common Stock 09/26/2007   S   10,136 D $ 27.8 3,836 D  
Series A Common Stock 09/26/2007   S   1,236 D $ 27.83 2,600 D  
Series A Common Stock 09/26/2007   S   1,000 D $ 27.82 1,600 D  
Series A Common Stock 09/26/2007   S   1,000 D $ 27.8001 600 D  
Series A Common Stock 09/26/2007   S   600 D $ 27.81 0 D  
Series A Common Stock 09/27/2007   M   45,000 A $ 17.54 45,000 D  
Series A Common Stock 09/27/2007   M   20,000 A $ 13 65,000 D  
Series A Common Stock 09/27/2007   M   13,500 A $ 11.84 78,500 D  
Series A Common Stock 09/27/2007   S   100 D $ 28.65 78,400 D  
Series A Common Stock 09/27/2007   S   1,600 D $ 28.64 76,800 D  
Series A Common Stock 09/27/2007   S   2,135 D $ 28.63 74,665 D  
Series A Common Stock 09/27/2007   S   500 D $ 28.62 74,165 D  
Series A Common Stock 09/27/2007   S   26,500 D $ 28.61 47,665 D  
Series A Common Stock 09/27/2007   S   40,542 D $ 28.6 7,123 D  
Series A Common Stock 09/27/2007   S   900 D $ 28.56 6,223 D  
Series A Common Stock 09/27/2007   S   735 D $ 28.56 5,488 D  
Series A Common Stock 09/27/2007   S   4,500 D $ 28.54 988 D  
Series A Common Stock 09/27/2007   S   488 D $ 28.52 500 D  
Series A Common Stock 09/27/2007   S   500 D $ 28.51 0 D  
Series A Common Stock               661 (1) I By 401(k) Savings plan
Series A Common Stock               306 (2) I By Spouse

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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 V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (right to buy) $ 17.54 09/27/2007   M     45,000   (3) 02/28/2011 Series A Common Stock 45,000 $ 0 101,915 D  
Stock Option (right to buy) $ 13 09/27/2007   M     20,000   (4) 07/31/2013 Series A Common Stock 20,000 $ 0 5,000 D  
Stock Option (right to buy) $ 11.84 09/27/2007   M     13,500   (5) 08/06/2014 Series A Common Stock 13,500 $ 0 9,000 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
TANABE CHARLES Y
12300 LIBERTY BLVD.
ENGLEWOOD, CO 80112
      Senior Vice President  

Signatures

 /s/ Charles Y. Tanabe   09/28/2007
**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 number of shares represents equivalent shares based on the fair market value of the shares of the Issuer's Series A common stock held by the unitized stock fund under the Liberty Media Corporation 401(k) Savings Plan based on a report from the Plan Administrator dated as of August 31, 2007. The Reporting Person has an interest in the unitized fund, which holds shares of the Issuer's Series A common stock and short-term investments.
(2) The Reporting Person disclaims beneficial ownership of these shares owned by his spouse.
(3) The option vested as to 30% on February 28, 2002 and 17.5% on February 28, 2003, 2004, 2005, and 2006..
(4) The option vests as to 20% on July 31, 2004, 2005, 2006, 2007, and 2008.
(5) The option vests as to 20% on August 6, 2005, 2006, 2007, 2008 and 2009.

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