Murdoch buys US satellite giant

["Kenneth Watt" <kwatt@xxxxxxx>]

Sorry for those that get this as a cross post, more inside news:

Murdoch buys US satellite giant=20

RUPERT Murdoch's News Corporation is to take control of Hughes Electronics
and its US satellite broadcaster DirecTV.

In a deal worth $6.6 billion (around =A34.25bn) in cash and stock, News
Corporation will buy General Motors's 19.9% interest in Hughes and a
furthe=
r
14.1% from other Hughes shareholders for $14 a share.

Once it has acquired 34% of the company, News Corporation will transfer it
to its Fox Entertainment Group subsidiary. Rupert Murdoch will become
Hughes's chairman while former News Corporation co-chief operating officer,
Chase Carey, will become president and chief executive officer.

It is also reported in some media that News Corporation is planning a
$1bn-plus restructure of DirecTV once it gains control.

The acquisition gives News Corporation its long-awaited break into the US
satellite TV sector. DirecTV is the USA's largest satellite broadcasting
company with more than 11 million subscribers.

Said Mr Murdoch: "Today we announce a genuinely exciting and
trasnforming
deal for News Corporation, the Fox Entertainment Group and Hughes
Electronics.=20

"With Fox taking a significant interest in Hughes, we are forging what
we
believe will be the premier diversified entertainment company in America
today, with leading assets in film, television broadcasting and production,
cable programming, and now pay-TV distribution," Mr Murdoch added.

"The alignment of Fox's valuable content assets and DirecTV's
distribution
platform will provide significant benefits to consumers and greatly enhance
the future businesses of both companies."

He also pointed out that with 15 years of expertise in pay-TV
"including th=
e
industry-leading BskyB", the company was confident in its ability to
grow
its new acquisition quickly.

"From day one," said Mr Murdoch, "we have pleged to make our
programming
available to all multi-channel distributors on non-discriminatory prices,
terms and conditions, and at the same time to open the DirecTV platform to
all competing programmers."

Late last year, General Motors pulled out of a deal, because of problems
over regulatory approval, to sell Hughes to Echostar Communications.

If this deal had gone ahead it would have given Echostar a near-monopoly in
the US satellite broadcasting market.

The new deal with News International is also subject to regulatory and
stockholder approval.