FCC OKs DIRECTV/Liberty Deal

[Inches]

BREAKING NEWS from SkyReport: FCC OKs DIRECTV/Liberty Deal
Late this afternoon, the Federal Communications Commission approved Liberty Media's proposed takeover of a controlling stake in DIRECTV.

The controlling stake is from News Corp. In addition to the satellite TV company interest, Liberty Media is receiving two regional sports networks and $500 million in cash for handing over its stake in News Corp. to the media giant.

FCC Chairman Kevin Martin and Commissioners Deborah Taylor Tate and Robert McDowell - all Republicans - approved the deal. The panel's two Democrats - Michael Copps and Jonathan Adelstein - dissented in the decision.

As of press time, it was unclear what conditions the FCC placed on the deal. Also, antitrust staff at the Justice Department was expected to clear the deal, but as of late afternoon no official word has surfaced from the department.

Liberty Media and News Corp. first proposed the DIRECTV/stock swap in December 2006.
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CORRECTION on Breaking News Story
Please note, a breaking news story that ran this afternoon pertaining to Federal Communications Commission approval of the Liberty Media/DIRECTV deal is incorrect. The agency has not yet approved the transaction.

This afternoon, the FCC denied a petition for reconsideration of the conditioned approval of the earlier News Corp/DIRECTV merger. That item has been pending before the agency.


Thought there was a scoop here...

Edit to the edit [Tom Robertson]: There was a scoop here. :) The FCC has approved the stock transfer.

[Radio Enginerd]

BREAKING NEWS from SkyReport: FCC OKs DIRECTV/Liberty Deal
Late this afternoon, the Federal Communications Commission approved Liberty Media's proposed takeover of a controlling stake in DIRECTV.

The controlling stake is from News Corp. In addition to the satellite TV company interest, Liberty Media is receiving two regional sports networks and $500 million in cash for handing over its stake in News Corp. to the media giant.

FCC Chairman Kevin Martin and Commissioners Deborah Taylor Tate and Robert McDowell - all Republicans - approved the deal. The panel's two Democrats - Michael Copps and Jonathan Adelstein - dissented in the decision.

As of press time, it was unclear what conditions the FCC placed on the deal. Also, antitrust staff at the Justice Department was expected to clear the deal, but as of late afternoon no official word has surfaced from the department.

Liberty Media and News Corp. first proposed the DIRECTV/stock swap in December 2006.
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So what does this mean for DirecTV subs? :)

[Earl Bonovich]

So what does this mean for DirecTV subs? :)

Not to much at this point in time...

At this point all it means is that a different individual/group holds the largest amount of stock of DirecTV group

[Grentz]

BREAKING NEWS from SkyReport: FCC OKs DIRECTV/Liberty Deal
Late this afternoon, the Federal Communications Commission approved Liberty Media's proposed takeover of a controlling stake in DIRECTV.

The controlling stake is from News Corp. In addition to the satellite TV company interest, Liberty Media is receiving two regional sports networks and $500 million in cash for handing over its stake in News Corp. to the media giant.



Sorry I am sick and my brain is fuzzy, but I dont exactly understand what is happening.

In the first line it says Liberty is taking over a controlling stake in Directv.

In the second line it says Liberty is receiving two regional sports networks and $500 million in cash for handing over its stake in News Corp to the media giant?

Who is the media giant?


Again maybe I am just being stuffy headed.

[jimmyv2000]

So what does this mean for DirecTV subs? :)

A possible DISASTER

!rolling

[Earl Bonovich]

Sorry I am sick and my brain is fuzzy, but I dont exactly understand what is happening.

In the first line it says Liberty is taking over a controlling stake in Directv.

In the second line it says Liberty is receiving two regional sports networks and $500 million in cash for handing over its stake in News Corp to the media giant?

Who is the media giant? These statements go against each other dont they? Who is buying the stock/who is receiving the networks/cash?


Again maybe I am just being stuffy headed.

The media giant, is probably Murdoch.

The "stock swap" was between two very rich people Murdoch and Malone (and their respective companies)

[Tom Robertson]

The FCC Press release: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-280450A1.pdf

FCC Approves Transfer of Control of Direct TV to Liberty Media
Subject to Conditions
Washington, DC –The Federal Communications Commission (FCC) today approved the transfer of control of DIRECTV to Liberty Media subject to conditions. The Commission concluded that, as conditioned, the public interest benefits of the transfer outweighed the potential harms and would be consistent with applicable Commission rules and policies.

As a benefit of the transaction, Liberty Media and News Corp., which is the majority stakeholder of DIRECTV, would sever their ownership interests with each other which will decrease media consolidation and reduce vertical integration therefore benefiting the public.

The Order also imposes certain conditions to ensure that the transaction will serve Commission’s competition and diversity goals. The Order requires that Liberty and DIRECTV abide by program access, program carriage, Regional Sports Network ("RSN") arbitration, retransmission consent arbitration conditions, modeled on similar conditions imposed in 2003, when the Commission approved the transfer of DIRECTV from Hughes to News Corp. In addition, the Order requires that all of the attributable ownership interests connecting DIRECTV-Puerto Rico and Liberty Cablevision of Puerto Rico, Ltd., which will be under common control as a result of the transaction, be severed within one year, at which point the companies must certify either that they have reduced the relevant interests to a non-attributable level or that they have filed any applications necessary to divest assets.

On balance, the Commission found that the transaction, as conditioned, would serve the public interest.

Action by the Commission February 25, 2008, by Memorandum Opinion and Order (FCC 08-66). Chairman Martin, Commissioners Tate and McDowell with Commissioner Copps concurring and Commissioner Adelstein approving and dissenting in part. Separate statements issued by Commissioners Copps and Adelstein.

Cheers,
Tom

[Ken S]

Liberty, whose chairman is John Malone (formerly of TCI), basically swapped its ownership stake in News Corp for News Corp's ownership stake in DirecTV.

Liberty will now have a controlling interest in the DirecTV board of directors.

Chase Carey has said he thought this would be better for DirecTV...but I very much doubt anyone wanting to keep their job would say otherwise. :)

[Grentz]

Liberty, whose chairman is John Malone (formerly of TCI), basically swapped its ownership stake in News Corp for News Corp's ownership stake in DirecTV.

Liberty will now have a controlling interest in the DirecTV board of directors.

Chase Carey has said he thought this would be better for DirecTV...but I very much doubt anyone wanting to keep their job would say otherwise. :)

Thx for the explaination guys, rereading with the new facts now it makes sense. I am just foggy minded right now since I am sick. Legal mumbo jumbo does not sit well with a cloudy mind! :lol:

[Tom Robertson]

Get well, Grentz!

[JohnH]

Duh. Justice still has to speak don't they?

[Tom Robertson]

Yes, that seems to be the case.

[curt8403]

Yes, that seems to be the case.

fcc is harder than justice

[johnck78]

Could this have any impact on LIN Negotiations? Hopefully for the better?

[Tom Robertson]

Could it? Perhaps. Will it likely? Not much, I don't think. (But I might not be aware of some leverage points.) :)

A few posters have told me they hear from LIN contacts that negotiations are moving again. Tho they could have stalled yet again. (Nature of negotiations somedays.) :(

Cheers,
Tom

[hdthebest]

I hope they don't take away our HD channels

[Tom Robertson]

Why would they? Sounds like a great way to completely lose business. :)

[Grentz]

fcc is harder than justice

Seems to be that way. FCC is a strict bunch when it comes to things. Too bad they never seem to be able to keep things underwraps when companies file for approval :p

Get well, Grentz!

Thx Tom :)

[curt8403]

Seems to be that way. FCC is a strict bunch when it comes to things. Too bad they never seem to be able to keep things underwraps when companies file for approval :p


FCC filings are a matter of public record. they have to be out in the open (Sunshine)
:P
Thx Tom :)
*****

[mightythor88]

I hope this will mean the rebirth of the directv relationship with tivo and a new (mpeg4)hd tivo unit.

[Grentz]

I know that, I am just saying it is funny that they are so strict on their own things, and yet do not have a way for companies to file without it being public.

Kinda sucks for a lot of companies when their secret pride and joy has to be launched into the public eye.

[Tom Robertson]

I hope this will mean the rebirth of the directv relationship with tivo and a new (mpeg4)hd tivo unit.Many people hope for this, but I'm pretty sure DIRECTV's acquisition of Replay hints otherwise.

[Doug Brott]

I hope this will mean the rebirth of the directv relationship with tivo and a new (mpeg4)hd tivo unit.

Not gonna happen ..

[JLucPicard]

I hope this will mean the rebirth of the directv relationship with tivo and a new (mpeg4)hd tivo unit.
This merger has been being discussed for quite some time now, and the relationship with TiVo is something that the consensus feels will not change one bit. You can hope, but it just ain't happening.

[curt8403]

This merger has been being discussed for quite some time now, and the relationship with TiVo is something that the consensus feels will not change one bit. You can hope, but it just ain't happening.

and frankly with Tivo using an operating system that is open source (and cannot be copyrighted) D* is worried about protecting itself from hackers

[Tom Robertson]

It's not so much the operating system, DIRECTV uses the same one. :)

TiVo's architecture on the other hand is a fairly insecure implementation of the operating system which leads to many concerns. Not that these problems couldn't be fixed in a manner very similar to what DIRECTV did.

Cheers,
Tom

[inkahauts]

I hope this will mean the rebirth of the directv relationship with tivo and a new (mpeg4)hd tivo unit.

I don't see this happening, and I definitely do NOT want it to happen. Directv is growing their DVR capabilities at an astronomical rate in comparison to Tivo, and do you really want them to be in bed with a company that will for ever more be listening to what cable companies want them to work on? I sure don't....:nono2:

[Grentz]

The only thing with the security and Tivo is take a look at the later units like the R10. Much harder to hack and the only real way is to do some intensive chip swapping that takes skill and such.

Frankly anything can be hacked, its just if it has enough interest around it. The Directv Tivos were hacked because Tivo was VERY popular and there were also the non-Directv Tivo units that used much of the same software/ideas so hacking could be tweaked a bit and carried over from those units to the Directv units.


With the bugs and glitches surrounding the Directv DVRs, I am pretty sure that if one of the very serious hacking teams went at it they could find a way to open it up.

[mthompso105]

This merger has been being discussed for quite some time now, and the relationship with TiVo is something that the consensus feels will not change one bit. You can hope, but it just ain't happening.
Not everybody sees it as you do. From a Seeking Alpha blog:
Bear Stearns was out with a new report Friday suggesting DirecTV (DTV) may warm to the idea of renewing ties with TiVo (TIVO) under Liberty Media’s ownership (LINTA), leaving Murdoch’s NDS (NNDS) venture behind. Or perhaps choosing to upsell a TiVo solution. Full story at
http://seekingalpha.com/article/65891-bear-analyst-feels-good-about-directv-and-tivo-renewed-relationship?source=yahoo

[Earl Bonovich]

Not everybody sees it as you do. From a Seeking Alpha blog:
Bear Stearns was out with a new report Friday suggesting DirecTV (DTV) may warm to the idea of renewing ties with TiVo (TIVO) under Liberty Media’s ownership (LINTA), leaving Murdoch’s NDS (NNDS) venture behind. Or perhaps choosing to upsell a TiVo solution. Full story at
http://seekingalpha.com/article/65891-bear-analyst-feels-good-about-directv-and-tivo-renewed-relationship?source=yahoo

In that same story...

That analysist got two MAJOR key facts wrong.

NDS has nothing to do with the HD-DVR platform.
TiVo-HD does not cost LESS then the HR2* platform.

The analysist basis his opinions based on the same facts we have out our hands. So his "opinion" is no better or worse then any of ours.

[viperlmw]

~snip~ NDS has nothing to do with the HD-DVR platform.
I was under the same impression, that NDS was involved in the HD-DVR. Where did this idea come from?

[Maruuk]

Nobody has a problem with foreign psycho-Nazi Murdoch controlling everything we watch? Are you kidding me? This the day after Alabama stations blacked-out the Don Seigelman story from 60 Minutes last night.

Back when there was a real anti-Trust division, they would have thrown this out the window faster than a live grenade.

Americans just got Orwelled again. Or in Newspeak, we just became unpersons.

[Tom Robertson]

NDS does the software for several of the other DIRECTV receivers and DVRs. Just not the HD-DVRs (or the TiVo ones.)

Cheers,
Tom

[Marvin]

Was there anything said about NewsCorp's promise in 2003 when it bought Directv to deliver locals to all 210 markets by the end of this year? I know the FCC seemed angry that they havent even come close to delivering on that promise (144/210) and they were talking about it a week ago last I heard, possibly making it a condition that they keep that promise (is that even possible?)

[Earl Bonovich]

I was under the same impression, that NDS was involved in the HD-DVR. Where did this idea come from?

NDS was/is involved with the R15/16 platforms.

So some people assumed (and continue to incorrect report), that they are involved with the HR2* platform.

The HR2* was designed and built, by DirecTV.
The only NDS pieces are the access card technology.

[Tom Robertson]

Was there anything said about NewsCorp's promise in 2003 when it bought Directv to deliver locals to all 210 markets by the end of this year? I know the FCC seemed angry that they havent even come close to delivering on that promise (144/210) and they were talking about it a week ago last I heard, possibly making it a condition that they keep that promise (is that even possible?)
The last I've read in the various Filings with the FCC was that DIRECTV had done a financial survey of all the remaining DMAs and decided upon a subset. They indicated they had not intended to serve them all, only to do the surveys and analysis.

I have not yet read the two commissioner commentaries issued today. They might have some information.

And I had not heard there was a discussion making such a requirement in this past couple weeks. You've got my curiosity piqued. :)

While I think it would be difficult to make such a requirement, I believe the FCC could negotiate an agreement from DIRECTV in order to win approval.

Cheers,
Tom

[Tom Robertson]

In that same story...

That analysist got two MAJOR key facts wrong.

NDS has nothing to do with the HD-DVR platform.
TiVo-HD does not cost LESS then the HR2* platform.

The analysist basis his opinions based on the same facts we have out our hands. So his "opinion" is no better or worse then any of ours.

Earl, I might slightly disagree. Many of us here spend much more time analyzing certain DIRECTV (and TiVo) moves than an analyst can spend on any one or two companies. (And I include you in the many of us.) Plus we read the collective thoughts of the many contributers here that can help us form a better opinion than said analyst.

Lastly, analysts have to be careful to not deal in rumors and leaks, only publically announced information (tho they can be a release point for information); yet the contributers here definitely can talk about rumors.

Besides, I think he completely mis-read the Replay acquisition in his thinking. :)

Cheers,
Tom

[gully_foyle]

I hope this will mean the rebirth of the directv relationship with tivo and a new (mpeg4)hd tivo unit.

DirecTV has spent considerable sums developing an in-house DVR development team. There are so many advantages to having control over your development cycle that I'd be surprised if they outsourced at this point.

The only way they'd have a relationship with TiVo at this point would be to BUY TiVo. Market price $877 million this PM. But I'd be very surprised if that happened.

[Ken S]

Was there anything said about NewsCorp's promise in 2003 when it bought Directv to deliver locals to all 210 markets by the end of this year? I know the FCC seemed angry that they havent even come close to delivering on that promise (144/210) and they were talking about it a week ago last I heard, possibly making it a condition that they keep that promise (is that even possible?)

They talked about it, but only one of the commissioners held firm to the requirement so there is no stipulation in the requirements by the FCC for the transfer.

[gully_foyle]

Nobody has a problem with foreign psycho-Nazi Murdoch controlling everything we watch? Are you kidding me? This the day after Alabama stations blacked-out the Don Seigelman story from 60 Minutes last night.

Back when there was a real anti-Trust division, they would have thrown this out the window faster than a live grenade.

Americans just got Orwelled again. Or in Newspeak, we just became unpersons.
Um ... Murdoch is LEAVING DirecTV with this deal. Even if you think Murdoch is the Great Satan, why is it bad to see him go? What did he get? He got more of NewsCorp, which he already controlled.

Seems like a win to me.

[phillyjg12]

geez now if theyd just approve xm and sirius

[Draconis]

I hope this will mean the rebirth of the directv relationship with tivo and a new (mpeg4)hd tivo unit.

:beatdeadhorse:

[hdtvfan0001]

Murdoch actually got some good things done. Now he's out of the picture.

We'll see if Liberty stays the course.

Once D11 is up in the weeks ahead...the moves thereafter will be some of the more interesting onces (HD LIL expansions, new national HD channels, more sats, move to MPEG4 across the board, phase-out of some older less-viewed channels, etc.).

It's just good to get this all settled. This all took just way too long. Your tax dollars not well at work.

[Ken S]

Murdoch actually got some good things done. Now he's out of the picture.

We'll see if Liberty stays the course.

Once D11 is up in the weeks ahead...the moves thereafter will be some of the more interesting onces (HD LIL expansions, new national HD channels, more sats, move to MPEG4 across the board, phase-out of some older less-viewed channels, etc.).

It's just good to get this all settled. This all took just way too long. Your tax dollars not well at work.

It's not settled yet. The Justice Department still must approve the transaction.

[General Custer]

Bring back TIVO!

They should have required that directv open up their receiver business to competition ala cable card. We would see how fast DLB would be here on the DVR+ then!

[sdk009]

geez now if theyd just approve xm and sirius

Beat me to the same thought.

[Doug Brott]

Bring back TIVO!

They should have required that directv open up their receiver business to competition ala cable card. We would see how fast DLB would be here on the DVR+ then!

Yeah, we see what cablecard has done to the industry .. The cable companies are all moving to switched digital video .. which the cablecard does not support.

As for bringing back TiVo .. not gonna happen.

[viperlmw]

NDS was/is involved with the R15/16 platforms.

So some people assumed (and continue to incorrect report), that they are involved with the HR2* platform.

The HR2* was designed and built, by DirecTV.
The only NDS pieces are the access card technology.
Thank you Tom and Earl for the info. I understand? now.

[Jhon69]

NDS was/is involved with the R15/16 platforms.

So some people assumed (and continue to incorrect report), that they are involved with the HR2* platform.

The HR2* was designed and built, by DirecTV.
The only NDS pieces are the access card technology.


Well when the guides and features are similar it's easy to assume.;)


Think if I was going to design something different as my own it's would include dual pictures in the guide(one for each tuner) DLB of course! and other features that would make my in house DVR stand apart from the crowd.:rolleyes:

[Earl Bonovich]

Well when the guides and features are similar it's easy to assume.;)


Think if I was going to design something different as my own it's would include dual pictures in the guide(one for each tuner) DLB of course! and other features that would make my in house DVR stand apart from the crowd.:rolleyes:

DirecTV designed the "general" feel of the GUI back about 4+ years ago... when they introduced the D10 SD receiver, and the H20 receiver.

The GUI is DirecTV's design... NDS was just the people that implemented it in the recievers (until the HR2* series came along).

The goal of DirecTV is basically to have the same GUI on all system... so going from one to another, has minimal impact to the end user.

[Greg Bimson]

Was there anything said about NewsCorp's promise in 2003 when it bought Directv to deliver locals to all 210 markets by the end of this year? I know the FCC seemed angry that they havent even come close to delivering on that promise (144/210) and they were talking about it a week ago last I heard, possibly making it a condition that they keep that promise (is that even possible?)There wasn't a condition on the NewsCorp takeover that DirecTV would carry all 210 markets. The only time a mention of carrying all 210 markets occurred was when the "New Echostar", the failed merger of DirecTV to Echostar, submitted those documents to the FCC and DOJ.

I've been studying local market moves on DirecTV for a very long time, and the only requirement was that DirecTV would get to 130 markets, which they did. That was part of the reason DirecTV started carrying locals from the 72.5 slot.

[Ken S]

Here's a hint or two at Malone's plans...

FULL ARTICLE FROM BUSINESSWEEK.COM (http://www.businessweek.com/technology/content/feb2008/tc20080225_978295.htm?chan=top+news_top+news+index _top+story)

Malone, in an exclusive interview with BusinessWeek, says he expects the Federal Communications Commission and Justice Dept. to approve the deal soon. He's crafting a vision for using DirecTV to take on the cable-TV industry, using partnerships with telecom carriers and possibly an alliance with EchoStar (SATS), the No. 2 satellite-TV provider. Once regulators sign off, DirecTV can "take on cable television as their strongest U.S. competitor," Malone says.

[Tom Robertson]

There wasn't a condition on the NewsCorp takeover that DirecTV would carry all 210 markets. The only time a mention of carrying all 210 markets occurred was when the "New Echostar", the failed merger of DirecTV to Echostar, submitted those documents to the FCC and DOJ.

I've been studying local market moves on DirecTV for a very long time, and the only requirement was that DirecTV would get to 130 markets, which they did. That was part of the reason DirecTV started carrying locals from the 72.5 slot.

Greg, you sound like you are more aware of this than I. Wasn't there some commitment from DIRECTV to review all the remaining DMAs and could it be that review commitment became confused as a commitment to implement all the remaining?

Thanks,
Tom

[Mikey]

Greg, you sound like you are more aware of this than I. Wasn't there some commitment from DIRECTV to review all the remaining DMAs and could it be that review commitment became confused as a commitment to implement all the remaining?

Thanks,
TomThere are two FCC commissioners that semi-disapprove of the Direct/Liberty transfer specifically because of the failure to provide LiL to all 210 DMAs.

http://svartifoss2.fcc.gov/servlet/ib.page.FetchAttachment?attachment_key=623846

[Tom Robertson]

Yes, I did finally read their commentaries. One of them was sounding as he wished the News Corp acquisition 4 years ago had had such a provision and that since it didn't, this new transfer should have. (Or something to that affect.)

I personally wonder if the costs to implement LILs into a DMA with 2,000 people can't be reasonably justified, should DIRECTV (and dish) be required by law to carry them?

Another avenue of possible interest would be to encourage DIRECTV and Dish to find a way for both to share a common LIL service (that all satellite operators could use, actually) so all the DMAs could be cost effectively covered.

One of the places we lived had two newspapers that were separate, competing entities, but formed a joint company for billing and customer service to save them both costs and let them compete on the things that really mattered as newspapers. Such a model can be used on LIL delivery it seems.

Cheers,
Tom

[n3ntj]

Do we know what RSNs are included in this deal?

[morgantown]

Do we know what RSNs are included in this deal?


FSN Pittsburgh is one (the DMA I'm in), and I do not recall the other one. Similar sized market IIRC.

[hdtvfan0001]

It's not settled yet. The Justice Department still must approve the transaction.
The robust female has vocalized.... :D

[Doug Brott]

Let's continue the overall discussion in the new thread ..

http://www.dbstalk.com/showthread.php?t=121142