Liberty nears deal on DirectTV

By Jeff Smith, Rocky Mountain News (Contact)

Friday, February 15, 2008

Douglas County-based Liberty Media is expected to complete its controlling-stake acquisition of DirecTV within the next couple of weeks, DirecTV's CEO said Thursday.

Chase Carey made his comments during the satellite-TV company's fourth-quarter conference call with analysts.

The comments follow last week's statement by Federal Communications Commission Chairman Kevin Martin that he is recommending approval of the deal and wants a vote to take place by Feb. 26.

The Justice Department has also been reviewing the deal, in coordination with the FCC.

Liberty spokesman John Orr said, "We're looking forward to completing this transaction and moving on to the next stage of ownership of a large stake in DirecTV."

Martin said his recommendation hinged on Liberty's restructuring or divesting its Puerto Rico cable-TV operation. DirecTV also covers Puerto Rico. Liberty didn't comment on how it has agreed to remedy the situation.

DirecTV, the country's largest satellite-TV services provider, has been operated by Rupert Murdoch's News Corp. Murdoch agreed to sell his stake in exchange for Liberty's minority stake in News Corp.

Some analysts expect Liberty, which will get a controlling stake of 39 percent, to soon make an offer to buy all of DirecTV.

Carey told analysts there isn't much he could say about the Liberty transaction until it closes.

But he did say the impending sale to Liberty had nothing to do with DirecTV's decision not to participate in the government's auction of valuable wireless spectrum. Carey said he thought the prices were too high and the risk too great to consider building a broadband network from scratch.

DirecTV offers high-speed Internet services in many markets through telco partnerships.

smithje@RockyMountainNews.com or 303-954-5155