It is reported that SBC Communications has entered negotiations to acquire DirecTV, a move which would ruin Rupert Murdoch’s ambition to take charge of a US satellite broadcaster.
According to the
New York Times, SBC may be willing to pay upwards of $10 billion for the business which is currently owned by General Motors. The telecommunications company is looking to extend its remit in order to compete more readily with mobile and cable operators.
DirecTV is the second largest pay-TV provider in the US and has been a long term target for Murdoch’s media empire. In 2001, News Corporation made sustained efforts to buy the broadcaster but was outmanoeuvred by EchoStar Communications (see Insight Analysis: Murdoch Walks Away From ‘Dream’ DirecTV Deal). Their bid was ultimately blocked by anti-trust authorities.
