Abstract

The acquisition of DirecTV has given Rupert Murdoch's News Corp considerable bargaining power. With DirecTV, Murdoch has gained access to 12 million subscribers in the US. DirecTV is also expected to fortify News Corp's own channels against competition from Comcast and Time Warner. Murdoch has dismantled everything at DirecTV that does not have anything to do with satellite broadcasting. He has also moved fast to acquire complete control of Fox Entertainment Group, which holds a controlling interest in DirecTV. DirecTV has launched new satellites. Modeling itself on the success of BSkyB (UK), DirecTV has announced it will introduce interactive television features to the American audience. Betting heavily on the popularity of football, DirecTV is finalising deals with the National Football League (NFL) for broadcasting rights. The case covers the history of DirecTV, its businesses and events starting from the acquisition of DirecTV in 2003 till early 2005.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

News Corp, DirecTV, Hughes, GM, General Motors, Comcast, Strategy, Acquisition, Rupert Murdoch, Monopoly, Media business