NEW YORK: John Malone’s entertainment group Liberty Media has exercised its right under a March 2003 agreement to buy US $500 million of News Corp preferred limited-voting ordinary American Depositary Receipts (ADRs) at $21.50 apiece.
News Corp released a statement stating that the transaction is expected to close in two weeks. Dow Jones has indicated that the deal gives Liberty another 23.3 million ADRS, each of which represents four preferred limited-voting ordinary shares, or 93 million shares in total.
Analysts feel that by exercising the option now Liberty has made a major saving. As per the agreement signed in March a deadline of 28 September was placed on Liberty to exercise its option. Had it refused News Corp had until 27 March 2005, to make Liberty buy the same number of ADRs at the same price. The condition was that News Corp was by then to have acquired an ownership interest in Hughes Electronics.
The report states that the deal adds more than 1 percentage point to Liberty’s stake in News Corp., giving it close to a 20 per cent economic interest in the company.
News Corp. chairman and CEO Rupert Murdoch controls almost 31 per cent of the company’s voting shares. However due to the large amount of preferred stock on issue, his economic interest is closer to 19 per cent.
By the end of the year News Corp hopes to gain the final regulatory approval for the purchase of a 34 per cent stake in Hughes Electronics, the owner of DirecTV.
Tag: Hughes Electronics
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Liberty Media to acquire $500 million News Corp preferred ADRs
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I&B shoots off another set of queries on Star News
NEW DELHI: The information and broadcasting ministry has sent off another set of queries to Media Content & Communication Services India Pvt. Ltd (MCCS), which has sought government okay for uplinking news content for Star News.
The present set of questions sent today, according to government officials, revolve around knowing what the three web companies that have been mentioned in Star News’ reply to the government yesterday do. The three companies include Touch Telecontent, Hughes Electronics and Rentworks Ltd.
According to a government official, MCCS has been asked to explain the investments that have been made by each shareholder in the company in the context of the narrow equity base that MCCS has.
The government has also asked MCCS to explain the ways in which the operational expenses of some of the companies mentioned in the reply (like Touch Telecontent) are met.
A government official said that the government is not clear whether the largest shareholder of MCCS (in this case ad man Suhel Seth) is the owner of the company or not. “So we have asked them to explain who is the owner of MCCS that is actually responsible for carrying out vital functions of Star News,” a senior government official said.
The government has also questioned a submission by MCCS that in the last three months Star News has mopped up revenue of around Rs 220 million. MCCS has been asked to explain the way this has been done, the government official said.
The Press Trust of India, quoted Star officials as saying, “the government sought some more clarifications today when Kaushal (company official Kaushal Dalal) met I&B officials but he didn’t have all the answers so we will submit our replies by Friday.” -
Bruce Churchill out of Star; for executive role in Hughes transition team
MUMBAI: Rupert Murdoch’s hardman at News Corp’s Asian operations is moving back to the US. President and COO Bruce Churchill leaves the Star Group today to join the team overseeing News Corp’s 34 per cent acquisition and future operation of DirecTV parent Hughes Electronics.
A company statement says that as a member of the Hughes transition team — and, subsequent to the completion of the acquisition, in a senior executive capacity — Churchill will be responsible for a variety of initiatives, including the creation and implementation of a long-term business plan for News Corp’s Latin American operations.
Churchill was appointed president and COO of Star in May 2000. He was deputy CEO of Star since joining in April 1996 responsible for operations across the entire company and driving Star’s development strategy. Churchill joined Star from Fox Television in Los Angeles, where he was senior V-P, finance. At Fox he managed the overall financial, corporate development and administrative functions for Fox Broadcasting, Fox Television Stations, FX cable networks and Twentieth Television domestic syndication.
What was left unsaid was that James Murdoch, who has been chairman and chief executive of Star since May 2000, is now ready and able to take full and singular charge. The grooming period is over and it will be his vision that leads Star’s future growth in Asia.
There is no word as to who could be replacing Churchill.