Rupert Murdoch’s News Corporation could finally clinch a deal to take control of US satellite group, DirecTV, with commentators claiming that an agreement could be signed as early as today.
According to report in the
Times newspaper, which is ultimately owned by News Corp, the $7 billion (£4.5 billion) deal would give the company a 20% stake in General Motors’ subsidiary Hughes Electronics, owner of DirecTV. News Corp would also receive a further 15% of publicly owned shares in Hughes. This would effectively give News Corp managerial control of the satellite broadcaster.
The reports come after telecoms group SBC, a rival suitor to DirecTV, dropped out of the bidding (see Murdoch Closes In On Satellite Dream). The deal would also come just after Murdoch has all but wrapped up the acquisition of Italian pay-TV operator Telepiù (see Murdoch To Rule The Roost Over Italian Pay-TV Market).
In Italy, News Corp will create Sky Italia, the country’s largest pay-TV operator. This, coupled with the imminent DirecTV acquisition, is significant step towards Murdoch’s ambition to create a global satellite broadcasting network. If the Hughes deal is successful, Murdoch will have satellite interests in the UK, Italy, Asia, India and North and South America, notes the Times.
At 11.30 this morning, there was no official announcement from News Corp about the DirecTV negotiations.
