Murdoch's DirecTV deal set to be approved by year end

NEW YORK – US regulators are likely to back News Corporation's proposed $6bn acquisition of DirecTV but with conditions to prevent it from acting anti-competitively in the battle for subscribers.

According to a report circulated to Federal Communications Commission members, published in the LA Times, the agency is concerned that News Corp may use its Fox TV channels as a weapon to entice cable viewers to take up the satellite service.

To prevent it from doing this, FCC chairman Michael K Powell wants to give cable operators rights to seek non-binding arbitration if they feel News Corp is withholding Fox TV stations from them.

Powell is understood to want to push approval of the deal through on December 19, giving the agency time to close the deal before the end of the year.

News Corporation chairman and chief executive Rupert Murdoch has long been interested in acquiring DirecTV, the biggest satellite TV network in the US, to complete his global satellite television empire.

He tried to acquire it from General Motors-owned Hughes Electronics in 2001 but was trumped at the last minute by an $18bn bid from smaller firm EchoStar.

However, the failure of EchoStar's bid to get past competition regulators allowed Murdoch to re-enter the fray with an offer a third of the size.

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