Posted: Wed, Dec 24, 2003, 11:55 AM ET (1655 GMT)
News Corporation, which closed its acquisition of satellite broadcaster DirecTV earlier this week, plans no major change in the way the company operates its fleet of spacecraft. DirecTV currently buys, launches, and operates its own fleet of satellites, a different approach than other satellite broadcasters owned by News Corporation, which instead lease capacity from major satellite operators. Some had expected DirecTV to take a similar approach once News Corp took over, but the Wall Street Journal reported Tuesday that DirecTV will keep its current approach to avoid being dependent on other satellite operators. That decision is a setback to satellite operators, who were looking to DirecTV as a potentially lucrative new customer. The report also said the News Corp, which acquired in an 81-percent stake in satellite operator PanAmSat in the same deal, has no plans to sell or spin off PanAmSat in the foreseeable future. Outside observers had though that News Corp would shed the satellite operator since it is not part of the company’s core businesses and would offer a way to make up some of the cost of the overall DirecTV deal.

Related Links:

•  Wall Street Journal article
•  DirecTV press release