Murdoch Acquires Hughes Electronics' DirectTV

In a story that we did not report earlier and that we have had inquiries about, Rupert Murdoch's company, News Corporation, last month finally succeeded in purchasing the controlling interest in Hughes Electronics and its DirectTV entity from General Motors Corporation for $6.6 billion US. This acquisition gives News Corp vaulted status as one of a select few media conglomerates in the U.S. that can create and distribute television programs. It also provides News Corp with far stronger bargaining power in negotiating prices and contracts with cable providers. The DirectTV deal is a major coup for Murdoch, who only six years ago started Fox News Channel and had to grovel with Time Warner Cable in order to secure Time Warner's agreement to carry Fox News Cable in New York. Murdoch spent large amounts of money and had to seek guidance from influential New York politicians to lobby on its behalf with Time Warner. News Corp's acquisition of DirectTV gives Murdoch the edge in competing with EchoStar Communications, the owner of the second largest satellite television service, Dish Network.