While
DirecTV tends to garner a lot of
negative attention, all the fuss apparently doesn't bother Liberty Media's CEO John Malone, as the firm has recently signed a deal to swap its 16.3-percent stake in News Corp. for "shares of DirecTV, three regional sports networks and $550 million in cash." Liberty, who already controls several other TV networks such as
Starz, is hoping to jump back to the forefront of television by assuming News Corp.'s three seats on DirecTV's board of directors. Interestingly, Malone stated that the new investment would "create financial, operating, and strategic flexibility," which could eventually freshen up the previously stale
merger talks between DirecTV and Echostar -- but considering Liberty Media still won't have a controlling stake in the company, we're not holding our collective breath.
Reader Comments (Page 1 of 1)
The Jeremy @ Dec 27th 2006 8:20PM
What do you mean Liberty Media won't have a majority stake in DirecTV? News Corp. has been calling the shots with the company with only its 33% stake!
The potentially best thing that can happen from this is that DirecTV will dump NDS as its DVR supplier once-and-for-all. The only reason why DirecTV went with NDS [at the expense of TiVo] was because Rupert Murdoch owned NDS and through his control of News Corp's stake in DirecTV "forced" them to favor NDS. NDS's wares have cost DirecTV customers who preferred TiVo as well as caused DirecTV to wait-and-wait-and-wait on that company to deliver their products. I doubt John Malone would use DirecTV to shore up other failing assets like Murdoch did [with NDS]. You know, like deliberately not enabling features present in other non-DirecTV TiVo models to make the DirecTV TiVo units look inferior to say NDS's wares.
As for a DirecTV/Dish Network (Echostar) merger, that was shot down by Congress just a few years ago. Many in the media said that was due to Congress's strong dislike of Mr. Ergin (sic) of Echostar...not to mention strong lobbying from Rupert Murdoch against it (so News Corp could acquire its stake in DirecTV).
There, my fingers have said enough.
GhostDoggy @ Dec 28th 2006 5:38AM
There is still no direct benefit to the consumers that I can see. Unless Malone can deliver full HDTV (and not HDlite) then he isn't doing me any good. Additionally, unless he is willing to implement a 100% lease-plan for the hd dvr instead of the $200-500 up-front bribe to lease it, then its again on the losing side to this consumer's hd dvr options.