News Corp said it had reached a definitive agreement that will see it acquire GM's 19.9% stake in Hughes, the DirecTV holding company, and a further 14.1% of Hughes from public shareholders.
The deal gives News Corp 34% ownership of Hughes, which it will transfer to TV and film subsidiary Fox Entertainment Group.
Commenting on the deal, Murdoch said: "With almost 15 years of expertise gained at our worldwide pay-TV platforms, including the industry-leading BSkyB, we are confident in our ability to grow this asset quickly, rewardingly and in a manner consistent with the competitive spirit that has guided News Corp for half a century."
News of the deal pushed News Corp's shares down 9% although, according to a report on Reuters, most analysts called the sell-off overdone and that DirecTV will strengthen the company's position in the key US market where it already has its Fox TV network.
Following completion of the acquisition, which is still subject to regulatory approvals, News Corp chairman and chief executive Murdoch will become chairman of Hughes, while News Corp's former co-chief operating officer Chase Carey will be president and CEO of Hughes.
The deal marks the return of Carey to News Corp after an absence of just over a year. He resigned originally after Murdoch's $18bn (£11.4bn) bid for DirecTV failed.
Hughes' corporate senior executive vice-president Eddy Hartenstein will become vice-chairman and report to Carey as part of a new management team.
Last month, it looked increasingly likely that there would be a Murdoch deal when News Corp became the sole bidder for DirecTV after US telecoms giant SBC pulled out of negotiations with GM.
With the addition of DirecTV, Murdoch now has his long sought-after global satellite TV business stretching from Stream in Italy to SkyTel in Latin America, Star TV in Asia, Foxtel in Australia and BSkyB in the UK.
Carey said: "This agreement represents an unprecedented opportunity to elevate what is already the leading brand in multichannel television to a more profitable and valuable level. We look forward to building on the progress that Hughes' management has made under difficult circumstances over these past three years by focusing on three main areas of the business: costs, customer service and offerings, and future growth opportunities. These are areas where there is clear potential -- and in which we have proven skills -- to achieve dramatic improvement."
After the completion of the deal, Hughes' 11-member board will comprise Murdoch; Carey; News Corp and Fox Entertainment group president and chief operating officer Peter Chernin; News Corp and Fox Entertainment chief financial officer David DeVoe; Hartenstein; and six independent directors including Neil Austrian, former president and COO of the National Football League; James Cornelius, chairman of Guidant; Charles Lee, chairman of Verizon Communications; Peter Lund, former president and CEO of CBS; and John Thornton, co-president of Goldman Sachs.
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