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News Corp. in Latin deal
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August 13, 2001: 7:07 a.m. ET
Report: Media company nears arrangement to strengthen Hughes bid
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NEW YORK (CNNfn) - News Corp. Chairman Rupert Murdoch has made a preliminary deal with his partners in a Latin American satellite TV venture to restructure the ownership of their business -- a move aimed at clearing the way for the acquisition of DirecTV owner Hughes Electronics, according to a published report Monday.
The Wall Street Journal, citing people familiar with the matter, said the agreement would allow News Corp. (NWS: Research, Estimates) to take controlling interest in SKY Latin America, which is currently owned 30 percent each by News Corp, Mexico's Grupo Televisa and Organizacoes Globo of Brazil, with Liberty Media Corp. owning the remaining 10 percent.
The final deal would remove an obstacle that has delayed News Corp.'s attempt to gain control of Hughes, a unit of General Motors Corp., the paper said.
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The deal could also enable News Corp. to initiate a possible merger with rival DirecTV Latin America, which is 78 percent owned by Hughes, the report noted. But such a plan, while likely to create a single satellite-broadcasting concerning covering all of Latin America, would face serious regulatory opposition, the WSJ said.
News Corp. is engaged in a tug of war with EchoStar Communications (DISH: Research, Estimates) for acquiring Hughes (GMH: Research, Estimates) from GM (GM: Research, Estimates).
Shares of News Corp. fell 37 cents to $36.85 in trading Friday. Hughes shares fell 5 cents to $19.83. 
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