Earlier this year, a provisional offer was mooted by News Corp, in which it would give GM $6bn (£4.1bn) for its 30% stake in Hughes, the GM division which owns DirecTV. News Corp would then merge Hughes with Sky Global Networks, parent of BSkyB and Rupert Murdoch's other satellite pay-TV interests.
Hughes and News Corp's shares have since deteriorated as a result of the downturn in the media sector and the terrorist attacks on the US. Reports earlier this month suggested News Corp's flagging share price would make the deal less attractive to Hughes and GM.
Now it has emerged that the collapse of Hughes shares, which trade as GM tracking stock, could make News Corp itself think twice about a deal.
Hughes tracking stock fell 8.1% yesterday in New York, to $12.40 (£8.42), valuing the company at abut $11.3bn (£7.67), around 35% less than its value in late August.
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