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News Corp. Wins DirecTV Approval

TSC Staff

U.S. regulators have approved News Corp.'s (NWS) $6.78 billion acquisition of DirecTV, the satellite TV company controlled by General Motors (GM) subsidiary Hughes Electronics (GMH).

The Federal Communications Commission approved the deal by a 3-to-2 vote, but added conditions to allay competitive concerns. The approval requires DirecTV to offer programming on a nondiscriminatory basis so consumers continue to have access to diverse sources and creates a structure to deal with potential price-gouging.

DirecTV is the No. 1 U.S. satellite television provider with 12 million subscribers. Opponents to the takeover were concerned the media giant run by Rupert Murdoch would exploit DirecTV's market position to promote its programming at the expense of competitors.

Under terms of the deal, News Corp. will acquire Hughes Electronics' 34% stake in the satellite TV company, giving it majority control.

News Corp. shares closed at $34.55 Friday. Hughes shares ended at $15.98.