Australian Media Mogul Set to Take Control of DirecTV

February 20, 2000

Australian media mogul Rupert Murdoch is close to finalizing a $70 billion deal that will leave him with control of DirecTV, the leading U.S. satellite television provider. News Corporation, Murdoch's media group, and General Motors, which owns DirecTV through its Hughes Electronics subsidiary, have reached a tentative agreement over the terms of the deal, which still requires approval of the boards of the companies involved, News Corp, GM, and Hughes.

Under the terms of the merger, Sky Global Networks, Murdoch's digital business company, would merge with Hughes. Murdoch would become chairman of the combined company. Microsoft, the U.S. software giant, is a surprise entrant to the deal, plans to invest $4-5 billion in the new business. Both GM and Microsoft will remain as minority holders in the combined venture.

If Murdoch can finally secure DirecTV, with nearly 10 million subscribers, he will control the world's largest group of satellite television operators. News Corp's satellite TV interests already stretch from Star TV in Asia to British Sky Broadcasting in the UK. The company has stakes in pay-TV operators in Germany, Italy and Latin America. But until now, the News Corp has lacked U.S. coverage.

Murdoch and News Corp own the Fox Broadcasting Company, Fox Studios, 23 U.S. TV stations as well as foreign outlets, the New York Post newspaper, the Times newspaper of London as well as numerous other Australian and British newspapers, HarperCollins, William Morrow, and Avon book publishers, TV Guide magazine, and several pro sports teams including the Los Angeles Dodgers and Lakers.

More TruthNews