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Merger Between News Corp and Hughes in Progress
Sky Global Networks (SGN), a company that encompasses News Corporation's global digital TV assets, is continuing talks with General Motors Corporation on the merger between News Corporation and Hughes Electronics Corporation, confirmed Rupert Murdoch, chairman of News Corporation Tuesday.
The deal will provide Murdoch with a North American satellite platform as well as a back-door listing of SGN.
Addressing the CLSA Investors' Forum by video link from News York, Murdoch said the discussion with General Motors had proved slow and frustrating, but he remained confident that the outstanding issues would be resolved.
The agreement will allow Murdoch to be within reach of his goal of running a global satellite operation, which he sees as the primary vehicle for distributing media content into households.
"Although cable distribution in the United States remains strong, there is currently no growth, while satellite is growing by approximately 300 households per annum," said Murdoch.
The Hughes satellites will provide substantial reach into Latin American region, one of the fastest markets for pay television in the world.
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