"Gah! Meh! Schmoo! *choke* Deeply saddened..."
Posted on 12/21/2003 7:07:32 AM PST by Sub-Driver
Fox set to span the world Geoff Easdown 22dec03
NEWS Corporation will gain 12 million American viewers and the ability to broadcast to five continents after winning approval to take over US satellite service DirecTV.
The news and entertainment organisation gained US regulatory approval for the takeover at the weekend. It becomes the first company in the US to have a television network, cable channels and a satellite television service.
DirecTV is the biggest US satellite TV service.
News Corp owns satellite-TV businesses including Sky ItaliaSpA in Europe, Foxtel in Australia and Hong Kong-based Star Group in Asia.
It shares an interest in British Sky Broadcasting, Sky Brasil Servicos in South America and operates Sky Mexico.
News Corp, the world's fifth-biggest media company, won final approval on Saturday to buy 34 per cent of DirecTV parent Hughes Electronics from General Motors for $US6.6 billion ($A9.16 billion).
Both the US Federal Communications Commission (FCC) and Department of Justice gave the green light to a plan, under which News Corp will gain control of the satellite television provider.
The FCC voted 3-2 to approve the deal, but imposed conditions aimed at ensuring News Corp does not bully cable and satellite rivals who also want to offer their customers its network and cable programming.
Opponents had raised concerns the acquisition would further reduce competition by cutting the number of media companies, thus driving up the price of cable and satellite services.
The interest in Hughes acquired by News Corp will be transferred to the Fox Entertainment Group.
News Corp chairman Rupert Murdoch, who unsuccessfully tried to buy DirecTV in 2001, welcomed the decision. He said the conditions, as he understood them from the public notice, would not adversely affect News Corp's plans for the operation of the business.
"We're delighted to have received clearances from the FCC and DOJ and we intend to close this transaction with GM in the next few days," Mr Murdoch said in a statement.
"We want to make it such a compelling service for viewers that it becomes the logical first choice of all consumers looking for America's best pay TV."
Mr Murdoch will become chairman of Hughes, while News Corp's former co-chief operating officer, Chase Carey, will become its president and chief executive.
Former chairman and chief executive of Fox Television Stations and Twentieth Television, Mitchell Stern, will become president and chief executive of DirecTV.
Hughes provides digital television entertainment, broadband satellite networks and services, and global video and data broadcasting.
Alex Muromcew, who helps manage $US600 million for the US firm Loomis Sayles & Co, said News faced a challenge making the satellite services profitable worldwide.
"Telepiu was a good acquisition," he said.
"BskyB has turned around. Star has been OK. It's a story of great potential, but will they be able to realise it with the regulatory environment in China?"
DirecTV within a year plans to boost revenue by offering set-top boxes with more interactive features and content.
News Corp's UK satellite service already lets viewers make purchases through their TV sets and pick camera angles when watching sports.
I only wish Fox went head to head at 6:30 PM Eastern with Dan Rather, Peter Jennings, and Tom Brokow on non-cable evening news. You would thing Fox could get 50% of that market overnight.
"Gah! Meh! Schmoo! *choke* Deeply saddened..."
Please FReepmail me if you want on or off my FoxFan list. *Warning: This can be a high-volume ping list at times.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.