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Tag: Liberty Media

  • News Corp, Liberty Media exploring DirecTV bid

    News Corp, Liberty Media exploring DirecTV bid

    COLORADO: Media conglomerates Liberty Media and News Corp are exploring the possibility of jointly acquiring top U.S. satellite TV service DirecTV. Liberty owns an 18 per cent stake in News Corp.

    Liberty Media’s CEO Robert Bennett has been quoted in a Reuters report saying that News Corp would be the preferred partner. Rupert Murdoch has been trying for quite a while now to get his hands on DirecTV as this would give News Corp the missing piece of a global satellite network. It would be financially advantageous for the two parties to proceed together as opposed to launching separate bids.

    Earlier this year, the proposed merger between Echostar and Hughes fell through. This was because the US anti-trust officials felt that consumers in rural areas without access to cable TV would have no choice but to subscribe to the merged group’s services.

    The federal communications commission (FFC) had voted unanimously to oppose the merger. The merger would have created the largest pay TV service. The FCC should not have a problem if General Motors is favourable towards the joint bid as News Corp does not have a strong presence in the US satellite market.

  • News Corp, Liberty Media exploring DirecTV bid

    News Corp, Liberty Media exploring DirecTV bid

    COLORADO: Media conglomerates Liberty Media and News Corp are exploring the possibility of jointly acquiring top U.S. satellite TV service DirecTV. Liberty owns an 18 per cent stake in News Corp.

    Liberty Media’s CEO Robert Bennett has been quoted in a Reuters report saying that News Corp would be the preferred partner. Rupert Murdoch has been trying for quite a while now to get his hands on DirecTV as this would give News Corp the missing piece of a global satellite network. It would be financially advantageous for the two parties to proceed together as opposed to launching separate bids.

    Earlier this year, the proposed merger between Echostar and Hughes fell through. This was because the US anti-trust officials felt that consumers in rural areas without access to cable TV would have no choice but to subscribe to the merged group’s services.

    The federal communications commission (FFC) had voted unanimously to oppose the merger. The merger would have created the largest pay TV service. The FCC should not have a problem if General Motors is favourable towards the joint bid as News Corp does not have a strong presence in the US satellite market.

  • Cox said to discuss merger with Malone-backed Charter

    Cox said to discuss merger with Malone-backed Charter

    MUMBAI: Cox Communications, the third-largest US cable provider, has held talks about combining with Charter Communications, according to reports on the matter.

    Cox president Pat Esser has discussed a deal with representatives from Liberty Media, which owns a 27 per cent stake in Charter. The structure of a potential deal hasn’t been determined; including which company might be the acquirer.

    Liberty and Charter are also still pursuing an acquisition of Time Warner Cable, the people said. Billionaire John Malone, who controls Englewood, Colorado-based Liberty, has said he wants Charter to get bigger so it can gain leverage in negotiations with TV networks, which have sought higher prices for the use of their programming.

    Cox has 4.8 million video subscribers, while Charter has 4.4 million, according to Craig Moffett, an analyst at Moffett Research LLC in New York.

    Malone sees mergers as an appealing way for the cable industry to cope with the lower video profit margins that have come from higher programming costs and fewer new customers.

    Malone’s strategy isn’t just about traditional cable. The high-speed internet connections that companies like Charter provide to US households are the key to the future of the TV industry, Malone said at the June meeting. He cited the growing viewership of streaming-video services, also known as over-the-top.

    Dissolving the trust is a step toward Cox gaining flexibility to merge the cable company.

  • Liberty Media to acquire News Corp’s DirecTV stake

    Liberty Media to acquire News Corp’s DirecTV stake

    MUMBAI: US media conglomerate News Corporation today announced that it had signed a share exchange agreement with Liberty Media.

    Under the terms of the agreement, Liberty will exchange its entire 16.3 per cent economic position (324.6 million Class A and 188 million Class B shares) in News Corporation for a 38.4 percent stake (470.4 million shares) in DirecTV, three Regional Sports Networks (FSN Northwest, FSN Pittsburgh and FSN Rocky Mountain) and $550 million of cash, subject to a working capital adjustment.

    News Corp believes the transaction will unlock tremendous value for the following reasons:The transaction will be immediately accretive to News Corporation’s earnings per share;

    News Corp will divest its stake in DirecTV at an attractive valuation on a tax-free basis, and;

    News Corporation will accomplish an approximately $11 billion stock buyback representing approximately 16 per cent of the outstanding stock.

    The share exchange agreement is subject to various regulatory approvals and an affirmative vote by a majority of holders of News Corporation’s Class B common stock, other than the Murdoch family and Liberty. If approved, the transaction is expected to be completed in the second half of calendar 2007.

    Following completion of the transaction with Liberty, News Corporation intends to redeem its stockholder rights plan and will consider eliminating its staggered board.

    With negotiations over the share exchange agreement now completed, News Corporation expects to continue its previously announced stock repurchase programme.