spacetoday.net: News Corp. to acquire control of DirecTV

Posted: Thu, Apr 10, 2003, 2:31 PM ET (1831 GMT)
News Corporation announced Wednesday that it had reached an agreement to acquire a controlling interest in satellite television operator DirecTV and its parent, Hughes Electronics. Under the deal, News Corporation, led by media mogul Rupert Murdoch, will purchase the 19.9 percent of Hughes currently owned by General Motors, as well as 14.1 percent of Hughes shares owned by the public. The combined 34 percent ownership of Hughes would give News Corporation control of the company, including DirecTV. The value of the deal is estimated at $6.6 billion, or $14 a share; Hughes shares closed Wednesday at $11.48 a share, and had lost more than a dollar a share in trading by midday Thursday. News Corp. was one of up to four companies that submitted bids for Hughes to GM last month, but all the other companies withdrew their bids in recent days. News Corp. had tried to acquire DirecTV in 2001 but was outbid by DirecTV’s rival, EchoStar. That attempted merger failed to win regulatory approval from the FCC and was abandoned late last year.