Posted: Wed, Feb 26, 2003, 10:36 AM ET (1536 GMT)
News Corporation and Liberty Media no longer plan to cooperate on a deal to purchase satellite television provider DirecTV, but instead will work on separate deals to acquire the company, the Wall Street Journal reported Wednesday. The Journal reported that News Corp. decided that it no longer needed the help of Liberty to acquire Hughes Electronics, the parent company of DirecTV, because complications in the deal's structure meant that News Corp. would only acquire two-thirds of the share of Hughes owned by General Motors. News Corp., headed by Rupert Murdoch, was also apparently concerned about potential regulatory issues, as Liberty Media has numerous investments in cable television providers. Liberty Media, led by John Malone, reportedly will make its own bid to acquire DirecTV; Liberty's satellite unit has made investments in several satellite companies in recent months, including Astrolink and WildBlue. Another telecommunications company, SBC Communications, is reportedly also interested in acquiring DirecTV.

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