Rupert Murdoch buys DirecTV
04-10-03, 07:01 AM
#1
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Rupert Murdoch buys DirecTV
I guess this could go in "Other", but feel it affects TV viewers more.
Link
I'm not sure how this will affect DirecTV viewers directly, but hope he leaves the operations up to the experts instead of putting his mark on it.
Wednesday, April 09, 2003
NEW YORK — News Corp. Ltd. (NWS) Chairman Rupert Murdoch on Wednesday announced his company had become the majority owner of Hughes Electronics Corp. and its DirecTV service, the nation's largest satellite television provider.
The proposed deal would give News Corp. access to DirectTV's more than 11 million subscribers and end a three-year effort by Murdoch to gain a U.S. outlet for his satellite services.
"News Corporation, General Motors (GM) and Hughes Electronics (GMH) reached a definitive agreement in which News Corp. would acquire GM's 19.9% stake in Hughes and a further 14.1% of Hughes from public shareholders and GM's pension and other benefit plans," News Corp. said in a statement.
News Corp. is the parent company of the Fox News Channel, which operates FOXNews.com.
News Corp. will acquire 34 percent of DirecTV parent Hughes Electronics, a subsidiary of GM, by purchasing 19.9 percent of Hughes shares owned by GM. News Corp. also will offer to buy 14.1 percent of Hughes shares owned by the public. News Corp. will pay about $14 per share, making the deal worth about $6.6 billion.
Murdoch, whose News Corp. owns the Fox Network, the Los Angeles Dodgers and other media entities, said the deal will 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.
The deal is subject to regulatory approval.
News of the deal came one day after telecommunications provider SBC Communications (SBC ) broke off talks with DirecTV parent Hughes Electronics Corp.
That left News Corp., which already has interests in Fox film and TV properties in the United States, British Sky Broadcasting in Britain and various Sky-branded and TV operations in Asia and Europe, the apparent lone bidder for DirecTV.
Hughes is a wholly owned subsidiary of automaker General Motors, but trades as a tracking stock that is 20 percent controlled by GM.
DirecTV was put back on the sales block earlier this year when rival satellite TV service EchoStar Communications Corp. (DISH) ended a more-than-year-long effort to acquire the company after running into U.S. regulatory problems.
DirecTV, with just over 11.2 million subscribers at the end of 2002, has been one of Hughes' primary growth engines. In the fourth quarter of 2002, DirecTV saw its revenues climb over 19 percent from the previous year to $1.8 billion.
Quarterly earnings before interest, taxes, depreciation and amortization, EBITDA, more than tripled to $191 million. EBITDA is a common financial measure for media companies.
NEW YORK — News Corp. Ltd. (NWS) Chairman Rupert Murdoch on Wednesday announced his company had become the majority owner of Hughes Electronics Corp. and its DirecTV service, the nation's largest satellite television provider.
The proposed deal would give News Corp. access to DirectTV's more than 11 million subscribers and end a three-year effort by Murdoch to gain a U.S. outlet for his satellite services.
"News Corporation, General Motors (GM) and Hughes Electronics (GMH) reached a definitive agreement in which News Corp. would acquire GM's 19.9% stake in Hughes and a further 14.1% of Hughes from public shareholders and GM's pension and other benefit plans," News Corp. said in a statement.
News Corp. is the parent company of the Fox News Channel, which operates FOXNews.com.
News Corp. will acquire 34 percent of DirecTV parent Hughes Electronics, a subsidiary of GM, by purchasing 19.9 percent of Hughes shares owned by GM. News Corp. also will offer to buy 14.1 percent of Hughes shares owned by the public. News Corp. will pay about $14 per share, making the deal worth about $6.6 billion.
Murdoch, whose News Corp. owns the Fox Network, the Los Angeles Dodgers and other media entities, said the deal will 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.
The deal is subject to regulatory approval.
News of the deal came one day after telecommunications provider SBC Communications (SBC ) broke off talks with DirecTV parent Hughes Electronics Corp.
That left News Corp., which already has interests in Fox film and TV properties in the United States, British Sky Broadcasting in Britain and various Sky-branded and TV operations in Asia and Europe, the apparent lone bidder for DirecTV.
Hughes is a wholly owned subsidiary of automaker General Motors, but trades as a tracking stock that is 20 percent controlled by GM.
DirecTV was put back on the sales block earlier this year when rival satellite TV service EchoStar Communications Corp. (DISH) ended a more-than-year-long effort to acquire the company after running into U.S. regulatory problems.
DirecTV, with just over 11.2 million subscribers at the end of 2002, has been one of Hughes' primary growth engines. In the fourth quarter of 2002, DirecTV saw its revenues climb over 19 percent from the previous year to $1.8 billion.
Quarterly earnings before interest, taxes, depreciation and amortization, EBITDA, more than tripled to $191 million. EBITDA is a common financial measure for media companies.
I'm not sure how this will affect DirecTV viewers directly, but hope he leaves the operations up to the experts instead of putting his mark on it.
04-10-03, 10:56 AM
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I sit near this guy at lunch at least a couple of times a week.
It's weird to look at him - old grandfatherly looking dude - and think, "This guy could buy and sell most of the planet. He could have people killed. He could have me killed."
He always has Evian and fresh veggies waiting at his table. He always gives me the "guy nod" and says, hi ya doing.
Me and Roopy... just hangin'
It's weird to look at him - old grandfatherly looking dude - and think, "This guy could buy and sell most of the planet. He could have people killed. He could have me killed."
He always has Evian and fresh veggies waiting at his table. He always gives me the "guy nod" and says, hi ya doing.
Me and Roopy... just hangin'
Last edited by BoatDrinks; 04-10-03 at 12:52 PM.
04-10-03, 01:40 PM
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I have DishNetwork, for which I am even more thankful now...
04-10-03, 07:43 PM
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Originally posted by adamblast
Yeeeeeeeesh.
This can't be good.
Yeeeeeeeesh.
This can't be good.
It may be a very good thing. GM only started Directv so they could sell it someday, and now someday has finally arrived.
Directv is a TV delivery system. Now instead of being run by a car company they will be run by a media-savvy multibillionaire with successful TV operations all over the world. Add in the fact he has a score to settle with Dish Network CEO Charlie Ergan and we have the makings of an all-out price/service war to win the hearts and minds of America's millions of cable and satellite subscribers.
It's a good time to have or get Directv IMHO
04-10-03, 07:47 PM
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Originally posted by BoatDrinks
I sit near this guy at lunch at least a couple of times a week.
It's weird to look at him - old grandfatherly looking dude - and think, "This guy could buy and sell most of the planet. He could have people killed. He could have me killed."
He always has Evian and fresh veggies waiting at his table. He always gives me the "guy nod" and says, hi ya doing.
Me and Roopy... just hangin'
I sit near this guy at lunch at least a couple of times a week.
It's weird to look at him - old grandfatherly looking dude - and think, "This guy could buy and sell most of the planet. He could have people killed. He could have me killed."
He always has Evian and fresh veggies waiting at his table. He always gives me the "guy nod" and says, hi ya doing.
Me and Roopy... just hangin'
04-10-03, 10:36 PM
#11
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Originally posted by NC-36
Pessimist
It may be a very good thing. GM only started Directv so they could sell it someday, and now someday has finally arrived.
Directv is a TV delivery system. Now instead of being run by a car company they will be run by a media-savvy multibillionaire with successful TV operations all over the world. Add in the fact he has a score to settle with Dish Network CEO Charlie Ergan and we have the makings of an all-out price/service war to win the hearts and minds of America's millions of cable and satellite subscribers.
It's a good time to have or get Directv IMHO
Pessimist
It may be a very good thing. GM only started Directv so they could sell it someday, and now someday has finally arrived.
Directv is a TV delivery system. Now instead of being run by a car company they will be run by a media-savvy multibillionaire with successful TV operations all over the world. Add in the fact he has a score to settle with Dish Network CEO Charlie Ergan and we have the makings of an all-out price/service war to win the hearts and minds of America's millions of cable and satellite subscribers.
It's a good time to have or get Directv IMHO
04-10-03, 10:58 PM
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Originally posted by NC-36
Pessimist
It may be a very good thing. GM only started Directv so they could sell it someday, and now someday has finally arrived.
Directv is a TV delivery system. Now instead of being run by a car company they will be run by a media-savvy multibillionaire with successful TV operations all over the world. Add in the fact he has a score to settle with Dish Network CEO Charlie Ergan and we have the makings of an all-out price/service war to win the hearts and minds of America's millions of cable and satellite subscribers.
It's a good time to have or get Directv IMHO
Pessimist
It may be a very good thing. GM only started Directv so they could sell it someday, and now someday has finally arrived.
Directv is a TV delivery system. Now instead of being run by a car company they will be run by a media-savvy multibillionaire with successful TV operations all over the world. Add in the fact he has a score to settle with Dish Network CEO Charlie Ergan and we have the makings of an all-out price/service war to win the hearts and minds of America's millions of cable and satellite subscribers.
It's a good time to have or get Directv IMHO
This is bad news indeed.
04-11-03, 06:29 AM
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Thread Starter
Originally posted by zuffy
What've ever happen to the DISH and DirectTV merger? Did the SEC disapprove it?
What've ever happen to the DISH and DirectTV merger? Did the SEC disapprove it?
Not like Cable didn't have that for years and years
04-11-03, 09:14 AM
#15
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Originally posted by zuffy
What've ever happen to the DISH and DirectTV merger? Did the SEC disapprove it?
What've ever happen to the DISH and DirectTV merger? Did the SEC disapprove it?
04-11-03, 09:40 AM
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It seems like he got a good deal as when he tried to outbid dish it was 20 something billion I think...
I am all for it, as I like english programming, and would love to see more coverage from Sky Sports broadcast on Fox Sports over ehre
I am all for it, as I like english programming, and would love to see more coverage from Sky Sports broadcast on Fox Sports over ehre
04-11-03, 09:46 AM
#17
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Doesn't cable still have a monopoly?
Granted, most people can get cable... but if you don't have a south facing apartment or a clear view of the sky, then you're out of luck.
There are a couple of places with more than one cable company, but the majority of areas have just one. Which is why the greater Los Angeles area still has (bankrupt) Adelphia servicing it.
Granted, most people can get cable... but if you don't have a south facing apartment or a clear view of the sky, then you're out of luck.
There are a couple of places with more than one cable company, but the majority of areas have just one. Which is why the greater Los Angeles area still has (bankrupt) Adelphia servicing it.
04-11-03, 08:19 PM
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Originally posted by Gallant Pig
Unfortunately Fox has a horrible track record on HD content, they best they've come up with is a crappy 480p faux-HD (well it's not even faux-HD it's just non-HD).
This is bad news indeed.
Unfortunately Fox has a horrible track record on HD content, they best they've come up with is a crappy 480p faux-HD (well it's not even faux-HD it's just non-HD).
This is bad news indeed.
Satellite TV is entirely different, and if a $ can be made in the HD business, Murdoch won't hestitate to add all the HD channels he can make money on.
