Rupert Murdoch may face some competition in his latest attempts to acquire America’s largest satellite-TV broadcaster DirecTV, with news that telecoms group SBC Communications is mulling a bid.
SBC is in preliminary talks with Hughes Electronics, the General Motors unit that houses DirecTV, and is studying the broadcaster’s business. However, it is still far from certain that it will make a bid.
Such a move would be a departure for SBC, which specialises in regional telecoms services and currently has a deal to market DirecTV’s rival EchoStar. Facing heightened competition in its local residential operations, it may decide an offer for the satellite firm is too risky.
But a bidding battle with Murdoch would be welcomed by GM, which is keen to get the maximum possible cash for the unit.
Data sourced from: Financial Times; additional content by WARC staff