Update: GM Board Agree to Consider New Murdoch Bid for DirecTV

02 May 2001

As forecast [WAMN, 01-May-01], the board of General Motors liked the color of the extra money lately slapped on their table by Rupert Murdoch in his bid for the glittering prize of DirecTV, America’s largest satellite TV broadcaster.

At yesterday’s meeting in Detroit, GM directors agreed to proceed with formal negotiations with Murdoch’s NewsCorp to merge DirecTV with Sky Global Networks. GM holds the key to the deal – a 33% controlling stake in Hughes Electronics, DirecTV’s parent company.

The agreement to negotiate paves the way to fulfilment of Murdoch’s ambition to acquire DirecTV – a deal that will crown him Emperor of world satellite television. NewsCorp expressed its “delight” in GM’s decision, hailing it as “a vote of confidence” in its new offer.

An engorged Sky Global Networks would own satellite operations across the globe – from the UK and Germany to India and Japan, as well as North and South America.

News source: The Times (London)