Murdoch Adds to His Empirer by Agreeing to Buy DirecTV

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Last updated at: (Beijing Time) Thursday, April 10, 2003

Murdoch Adds to His Empirer by Agreeing to Buy DirecTV

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The board of General Motors Corp. on Wednesday approved a bid by Rupert Murdoch's News Corp. to acquire control of Hughes Electronics Corp. and its DirecTV service, the nation's largest satellite television provider, in a deal worth $6.6 billion to GM and shareholders.

The proposed deal would give News Corp. (NWS) access to DirectTV's more than 11 million subscribers and end a three-year effort by media titan Murdoch to gain a U.S. outlet for his satellite services.

News Corp. will acquire 34% of DirecTV parent Hughes Electronics Corp., a subsidiary of GM (GM), by purchasing 19.9% of Hughes shares owned by GM. News Corp. also will offer to buy another 14.1% of Hughes shares owned by the public.

News Corp. will pay about $14 per share, making the deal worth about $6.6 billion.

Murdoch would become chairman of Hughes and Chase Carey, who currently serves as an adviser to News Corp., would become president and chief executive officer of Hughes.

Murdoch, whose News Corp. owns the Fox Network, the Los Angeles Dodgers and other media entities, said the deal would increase competition in the cable markets and provide better services to U.S. viewers.

"With Fox taking a significant interest in Hughes, we are forging what we believe will be the premier diversified entertainment company in America today, with leading assets in film, television broadcasting and production, cable programming, and now pay-TV distribution," Murdoch said.

Source: Agencies

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