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Hughes talks continue
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December 5, 2000: 3:45 p.m. ET
GM talking to several interested buyers of satellite unit, but no deal seen this year
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NEW YORK (CNNfn) - General Motors Corp. disclosed Tuesday that it won't reach an agreement to sell or spin off its Hughes Electronics Corp. satellite division this year, but both companies insisted talks to dispose of the operation are continuing.
A spokeswoman for the Detroit automaker, noting that the company has never laid out a timetable to either sell or spin the unit off, said General Motors is continuing to talk with several potential buyers of Hughes (GMH: Research, Estimates), which primarily operates the DirecTV satellite division.
"We are still engaged in discussions with multiple interested parties and we are still interested in reaching an optimistic disposition of the business," GM spokeswoman Toni Simonetti said.
 GM (GM: Research, Estimates) laid out plans in October to explore selling or spinning off El Segundo, Calif.-based Hughes, a move rumored on Wall Street for nearly a year now, to unlock shareholder value in its own shares, which recently set a 52-week low of $48.43.
Among the potential bidders are News Corp. (NWS: Research, Estimates), the Australian media conglomerate run by Rupert Murdoch, who has long coveted the type of significant market share in the U.S. satellite industry Hughes could provide. Other possible bidders include General Electric Corp. (GE: Research, Estimates), Walt Disney Co. (DIS: Research, Estimates), Viacom Inc. (VIA: Research, Estimates) and Microsoft Corp. (MSFT: Research, Estimates).
Speaking to analysts and investors at the UBS Warburg Media Conference in New York Tuesday, Hughes Senior Executive Vice President Eddy Hartenstein called the negotiations "a very, very high priority for us at Hughes."
However, he noted several factors, including the high volatility on Wall Street, has the company on a more patient track.
"We're diligently working on a deal that works for us on the right terms," he said. "While we're making progress . . . I can't give you a pinpoint timeframe."
Hughes' operating loss grew to $88 million from $30 million during the recently-competed third quarter, and some have questioned whether the company can continue its rapid growth with digital cable offerings rolling out across the country.
Hartenstein said Tuesday his executive team is "keeping a close eye" on digital cable offerings, but said thus far they hadn't noticed any slowdown in subscriber growth in the 41 markets DirecTV covers.
General Motors shares climbed $1.56 to $53.13 in late afternoon trading Tuesday while Hughes shares rose $2.33 to $25.22. 
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