spacetoday.net: SBC considering purchase of DirecTV

Posted: Sat, Feb 8, 2003, 12:35 PM ET (1735 GMT)
SBC Communications is reportedly pursuing a bid to acquire satellite television company DirecTV, according to news reports published Saturday. The New York Times and other sources reported that General Motors, which owns DirecTV parent Hughes Electronics, approached SBC early this year in order to create competition for News Corporation, the media company that has been seen as the front-runner to acquire DirecTV ever since the proposed DirecTV-EchoStar merger was called off late last year. SBC Communications is the second-largest local phone company in the US and is formed from several of the "Baby Bells" that emerged from the breakup of AT&T in the 1980s. SBC is reportedly looking at DirecTV as a way to offset declines in its local phone business. No timetable for the deal was reported, although the New York Times reported that SBC may soon begin due diligence on DirecTV's financial records.