News Corporation and Liberty Media have abandoned plans to launch a joint bid for Hughes Electronics and it is becoming increasingly likely that the two organisations will compete to gain control of the technology provider.
The main prize on offer is America’s largest satellite TV operator, DirecTV which has also attracted the attention of telecommunications company, SBC Communications (see
SBC Expresses Interest In DirecTV).
Rupert Murdoch has long harboured an ambition to break into the US satellite market but was frustrated when Echostar agreed a deal with GM to merge its satellite operations with those of Hughes (see Insight Analysis: Murdoch Walks Away From ‘Dream’ DirecTV Deal). That move was ultimately blocked by regulators and speculation over the future of DirecTV has been rife ever since.
The decision of News Corp and Liberty Media, owned by John Malone, to go separate ways is thought to be based on tax and regulatory concerns and is not the result of any animosity between the two corporations.
