DirectTV sold???

[Ladaveydo]

I was told that DirectTV was sold and that the new company in the next month will be calling all sub's and making adjustments inside there house..........

Does anybody know what the hell Im talking about...???

[denrod3762]

as of this a.m. it's only talk. The latest rumor is that G.M. will spin off as a independent company with murdock owning 36% of Hughes

[RadDoc]

http://www.washingtonpost.com/wp-srv/aponline/20010207/aponline052824_000.htm

I guess we'll have to begin using Rupert instead of Dave!

[techboss]

February 07, 2001

News Corp. Closes In on DirecTV Deal
Rupert Murdoch is hammering out terms with the largest U.S. satellite network to form a $70
billion global force. And reports say Microsoft and John Malone may bankroll the deal.
By Reuters

LONDON (Reuters) – Rupert Murdoch's News Corp is close to a deal to merge its
satellite TV assets with the largest U.S. satellite TV provider DirecTV, creating a
$70 billion global network, industry sources said on Wednesday.

News Corp and U.S. auto company General Motors Corp, which controls DirecTV,
have sketched out the main points of a deal that would value the GM subsidiary
containing DirecTV at about $45 billion, the sources said.

However, the deal could still take some time to finalize and could yet fall apart,
they warned. A spokesman for General Motors said on Tuesday that no
agreement had been reached and that the company remained in talks with a
number of people.

Under the terms of the deal currently under discussion, GM would spin off Hughes
Electronics Corp, its subsidiary which houses DirecTV. News Corp would then
merge its satellite TV holding Sky Global Networks into Hughes.

Newspapers reported on Wednesday that News Corp would take an initial stake in
the combination of around 35 percent with Hughes shareholders holding the
remaining 65 percent.

However, News Corp, which reported better than forecast earnings on
Wednesday, has made it clear it wants control of DirecTV and Murdoch is
expected to take charge of running the combination, industry sources noted.

News Corp ADRs in New York were up 2.99 percent at $38.62 at 1520 GMT, after
rallying in Sydney on hopes that a deal could be wrapped up shortly, after weeks
of discussions. Hughes shares tumbled 8.88 percent to $25.25.

MICROSOFT, LIBERTY MEDIA PARTNERS

News Corp is not expected to inject cash into the deal but newspapers reported
that Microsoft could invest around $4 billion to become a significant minority
investor alongside cable TV dealmaker and Murdoch's strategic partner, John
Malone .

The shape of the deal is very different from what had originally been expected by
analysts when GM started talks over Hughes. But it would satisfy GM's desire for
a cash infusion of $5-8 billion to shore up its balance sheet, analysts said.

Under the deal, Panamsat, the commercial satellite operation also owned by Los
Angeles-based Hughes, would be spun off for between $6.5 billion to $7 billion,
newspapers said.

GM may then sell down its stake in the combination for around $8 billion, leaving
News Corp as the largest single shareholder, newspapers suggested.

A News Corp spokesman declined to comment on the deal on Tuesday, apart
from confirming that News Corp was interested in DirecTV. Hughes also declined
to comment, simply saying that it was exploring options on what to do with
Hughes.

Murdoch has been eager to secure a deal with DirecTV to fill holes in his Sky
Global empire and add some 9.5 million U.S. subscribers. Sky Global, which was
created last year to bring together Murdoch's satellite interests and was
originally slated for flotation, is valued at between $35 and $45 billion.

HUGHES PREMIUM

The reported $45 billion valuation for Hughes represented a roughly 12.5 percent
premium over the market capitalization of the GM unit, which was near $40 billion
at the close Tuesday.

But this did little to lift the gloom from Hughes' shares on Wednesday, with many
analysts originally hoping that the GM subsidiary would be bought out for cash.
DirecTV is the third largest subscription TV service in the United States, behind
cable operators AT&T and AOL Time Warner .

While News Corp looked unlikely to cough up any cash as part of the deal,
analysts warned the financing of any News Corp. deal would be crucial for
investors.

Standard and Poor's put the company's triple-B corporate credit rating on
negative review late in December, saying the company's balance sheet was
under pressure. A ratings downgrade could push News Corp. out of its investment
grade rating into junk status.

News Corp made no mention of the DirecTV deal when it reported results on
Wednesday, posting a seven percent rise in second-quarter operating earnings
on flat revenues.

Unveiling its own results on Wednesday, BSkyB – which it is 37.5 percent owned
by News Corp – also declined to comment on the status on the Sky Global talks.
News Corp's stake in BSkyB, which has a market value of around 7.5 billion
pounds, is one of Sky Global's biggest asset.

Copyright 2001, Reuters News Service