The Federal Communications Commission is set to approve News Corporation’s takeover of DirecTV with conditions to prevent it exploiting its market position.
In April, Rupert Murdoch’s company agreed to pay General Motors $6.6 billion for a 34% stake in Hughes Electronics, which owns DirecTV (see
Murdoch Seals Acquisition Of DirecTV).
Concerns were raised that control of the largest US satellite broadcaster would allow News Corp to exert too much influence and withold programming from cable operators. Murdoch has vowed not to prejudice against the cable firms, claiming that such a move would be counter-productive (see Murdoch Puts The Case For Sky America).
Nonetheless, it is believed that the FCC has recommended the involvement of an independent arbiter to settle any disputes between News Corp and the cable companies.
FCC chairman, Michael Powell is aiming to get approval for the deal by December 19 so that the transaction can be completed before the year is out.
