News Corp. purchase of DirecTV OK’d

News Corp. purchase of DirecTV OK’d

Associated Press

Saturday, December 20, 2003

Washington — Federal regulators on Friday approved News Corp.’s takeover of DirecTV, the nation’s largest satellite television provider.

Certain conditions were imposed on the $6.6 billion agreement, however.

The Federal Communications Commission said News Corp. must agree to arbitration to solve disputes with companies that carry its broadcast and cable channels, such as cable companies and other satellite providers. And News Corp. must treat all stations equally, not tilt in favor of its Fox broadcasting network and cable stations such as FX.

The arbitration was to alleviate concerns that Fox would pull its network programming, which includes professional baseball and football, off cable systems to encourage viewers to subscribe to DirecTV.

News Corp. agreed not to pull either the network programming or its regional sports networks while a dispute was being arbitrated.

The Justice Department said it would not oppose the deal.

The Republican-dominated FCC split along party lines, 3-2, to approve the agreement.

“This merger with strict conditions ultimately benefits the American public,” FCC Chairman Michael Powell said.

But one of the two Democrats on the commission, Michael Copps, said the deal would reduce competition, not enhance it.

“Where is the logic — where is the public interest benefit — of giving more and more media power to fewer and fewer players?” Copps said.