Rupert Murdoch has finally fulfilled his ambition to break into the US satellite market by agreeing a deal to take control of the television company, DirecTV.
The mogul’s media enterprise, News Corporation announced this week that it had negotiated a $6.6 billion package with General Motors, which currently owns the broadcaster.
Under the terms of the settlement, News Corp will acquire GM’s 20% stake in Hughes Electronics which owns DirecTV and a further 14% from other Hughes shareholders.
The deal is subject to approval from shareholders and regulators but once completed will see Hughes amalgamated into the Fox Entertainment Group which already has a strong terrestrial presence in the US. DirecTV is the jewel in the crown of the Hughes business with more than 11 million subscribers across the country.
A previous attempt to gain control of the company back in 2001 came to nothing and resulted in the resignation of News Corp’s co-chief operating officer Chase Carey. Carey now returns to take over as president and CEO of Hughes.
Murdoch, who will act as chairman, commented: “With Fox taking a significant interest in Hughes, we are forging what we believe will be the premier diversified entertainment company in America today, with leading assets in film, television broadcasting and production, cable programming, and now pay-TV distribution. The alignment of Fox’s valuable content assets and DirecTV’s distribution platform will provide significant benefits to consumers and greatly enhance the future businesses of both companies.”
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