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Takeover of DirecTV gets OK ; FCC attaches strings to $6.6 billion deal

Posted on: Monday, 22 December 2003, 06:00 CST

WASHINGTON - Federal regulators on Friday approved News Corp.'s takeover of DirecTV, the nation's largest satellite television provider, but imposed certain conditions on the $6.6 billion deal.

The Federal Communications Commission said News Corp. must agree to arbitration to iron out disputes with companies that carry its broadcast and cable channels, such as cable companies and other satellite providers.

The arbitration was to alleviate concerns that Fox would pull its network programming, which includes pro 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.

Under the deal announced in April, News Corp. would acquire 34 percent of DirecTV parent Hughes Electronics, a subsidiary of General Motors Corp.

The deal would give News Corp. the largest block of shares in Hughes and controlling interest in DirecTV, which has more than 11 million subscribers.

The Republican-dominated FCC split along party lines, 3-2, to approve the deal. News Corp. owns the Fox broadcasting network and the Fox News Channel, headed by former GOP political operative Roger Ailes.

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