Murdoch Gets Go-Ahead On US Satellite TV Ambitions

Rupert Murdoch’s News Corporation has been granted permission to take over US satellite broadcaster DirecTV, in an approval by the Federal Communications Commission (FCC) at the end of last week.

The approval of the acquisition of DirecTV by News Corp from Hughes Electronics had been widely expected. The decision clears the way for Murdoch’s plans to rebrand DirecTV as Sky America, significantly extending his Sky satellite television brand. DirecTV is America’s largest satellite television provider, reaching 12 million subscribers.

News Corp’s Fox Entertainment Group will take 34% of Hughes Electronics, with the remaining 66% to be held by the general public and employee benefit trusts. News Corp’s 34% stake is the largest and gives the company a de facto controlling interest in Hughes and its subsidiaries, including DirecTV.

Subscribers to MediaTel Insight can access more national and international media analysis, forecasts and news by visiting the site.