Media mogul Rupert Murdoch is understood to be on the verge of the biggest deal of his career – the $70 billion purchase of satellite broadcaster DirecTV.

Insiders say that NewsCorp has reached an agreement with General Motors, owner of DirecTV, that will see Murdoch become chairman of a new company combining the broadcaster with NewsCorp’s Sky Global family of satellite companies.

Sky Global’s assets would be folded into the new business, giving NewsCorp an initial stake of 35%. GM would then reduce its 65% stake in the group to leave its partner as the largest shareholder.

However, those close to the negotiations stress that talks have not yet concluded. Moreover, the deal must be approved by the boards of NewsCorp, GM and Hughes Electronics, the GM arm which encompasses DirecTV.

News source: Financial Times