The news of Malone's departure from the DirecTV was made as part of a financial announcement Tuesday from the satellite television company that it was recapitalizing the DirecTV stock ownership held by Malone and his family.
The Federal Communications Commission mandated the change be made by
, where Malone is chairman, as a result of its acquisition of DirecTV from
in February 2008.
Under the terms of the agreement, the Malone family will exchange 21.8 million shares of Class B common stock for 26.5 million shares of Class A DirecTV stock. The Malones' voting interest in DirecTV is reduced from 24.3% to approximately 3% as result of the recapitalization.
DirecTV said in a statement late on Tuesday that, "The FCC staff recently has advised DIRECTV senior management that the trust arrangement could not remain in place indefinitely and was not alone sufficient to comply with the requirements of its order, primarily because of structural considerations associated with DIRECTV's Puerto Rico operations, combined with Dr. Malone's continued de facto control of DIRECTV (as determined by the FCC), through his 24.3% voting interest, continued position as Chairman of the Board and relationships with certain other DIRECTV board members."
In addition to Malone resigning from the DirecTV board, Greg Maffei, who is president and CEO of Liberty Media, and Paul Gould, who is a member of the board of directors of
, are expected to resign from the board of directors of DirecTV.
-Reported by Eric Rosenbaum in New York.
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