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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: werefrog who wrote (57577)	4/22/2001 11:50:24 AM
From: matt dillabough	Respond to of 74651

DJ News Corp. To Make New Bid For DirecTV Dow Jones News Service ~ April 22, 2001 ~ 12:58 am EST LOS ANGELES (AP)--News Corp. is reviving its bid for DirecTV. Chairman Rupert Murdoch will present an offer to take control of the nation's leading satellite television provider Monday morning in Detroit to a group of executives from General Motors, parent of DirecTV's owner, Hughes Electronics Corp., the Los Angeles Times reported Friday, citing unnamed executives close to the situation. Murdoch wants El Segundo-based DirecTV to fill a hole in News Corp.'s worldwide satellite and broadcasting empire. News Corp. requested the meeting after bad blood developed in negotiations with Hughes Chairman Michael T. Smith, whom Murdoch accuses of reneging on a $70 billion merger pact he claims they shook hands on in February. At the same time, News Corp. is close to finalizing an agreement under which Microsoft Corp. will become its satellite partner. Microsoft has agreed to invest about $3 billion and contribute its interactive television operation, Ultimate TV, to News Corp.'s satellite television company, Sky Global Networks, several sources told the Times. Microsoft's investment is contingent on News Corp.'s pulling off the DirecTV deal. Microsoft Chief Executive Steven Ballmer is scheduled to accompany Murdoch to Detroit, where they will meet with GM's CEO and President G. Richard Wagoner Jr. and Vice Chairman Harry J. Pearce. GM has been demanding $6 billion in cash as part of its payout. News Corp. has turned to partners such as Microsoft and Liberty Media Corp., which is contributing $500 million, because it lacks its own cash stockpile. One source said Murdoch could borrow the rest. News Corp.'s quest for DirecTV is long-running. Discussions between News Corp. and Hughes broke down in February after the terms of a tentative agreement were leaked. Hughes shareholders started getting rid of stock in protest of the minuscule premium they were getting, sending Smith in search of a better deal. It is unclear whether Murdoch is sweetening the terms of his last proposal. Under that deal, Murdoch agreed to merge his Sky assets into Hughes, with News Corp. ending up with roughly a 35% stake in the company and existing Hughes shareholders holding the remaining 65%. As the single largest shareholder, News Corp. would have control after a spinout from GM. (END) DOW JONES NEWS 04-22-01 12:58 AM