Business mogul Rupert Murdoch is looking to trade DirecTV Group,
the nation’s leading satellite TV operator, for something he values
even more...greater control of his own company.
Murdoch is negotiating to barter his 38% stake in DirecTV to
cable pioneer John Malone, for the 19% voting stake in News
Corp...owned by Malone’s Liberty Media Corp. The trade would free
Murdoch from fears that Liberty’s chunk could fall into unfriendly
hands and threaten his family’s grip on News Corp, which controls
nearly 30% of the stock.
Under the terms being discussed, Liberty would trade its 19%
stake in News Corp., which is worth more than $11 billion, for the
38% stake in DirecTV, which is valued at about $9 billion. (Liberty
would get another asset in the trade, such as a TV station and would
contribute some cash so the deal would be tax-free for News Corp.)
The barter deal would save the two companies as much as $4.5
billion in capital-gains taxes, according to a tax analyst.
