DirecTV Unit Chief Quits

A top executive at DirecTV (DTV) left the company as CEO Chase Carey consolidated his control of the satellite television broadcaster.

DirecTV said Mitch Stern, who had been president and CEO of its DirecTV Inc. operating subsidiary, left effective today. Carey will take over his roles, and the company won't replace Stern.

Stern and Carey both joined DirecTV at the end of 2003 as the company came under the control of Rupert Murdoch's News Corp. (NWS).

Monday's move came just over a month after DirecTV posted disappointing fourth-quarter results that suggested subscriber growth was flattening out. Though the company added 444,000 users in the quarter, it missed some analysts' projections. Meanwhile subscriber acquisition costs jumped nearly 5%, and monthly customer defections, or churn, inched higher.

"While we considered 2004 a transition year, DirecTV achieved a tremendous amount under Mitch's leadership," said Carey. "While it was exciting to be part of such a dynamic organization, the time was right for me to move on," Stern said.

Since Carey took over in December 2003, DirecTV has sold its noncore assets to focus on its satellite television businesses in the U.S. and Latin America.

Before he took the DirecTV job, Stern was CEO at News Corp.'s Fox Television Stations unit. At the time he hired Stern, Carey said, "DirecTV must distinguish itself as the best television experience in the world. No executive is better qualified than Mitch Stern to fulfill this vision."

On Monday, DirecTV fell 3 cents to $15.34.

>To order reprints of this article, click here: Reprints