News Corp's bid for DirecTV in trouble

LONDON - Rupert Murdoch's ambition to take over US satellite broadcaster DirecTV could be on the rocks in the aftermath of the terrorist attack on the New York.

Shares in News Corporation have fallen by one fifth since last Tuesday's attacks on the World Trade Center and the Pentagon.



About 70% of News Corp's business is in the US and if, as expected, Murdoch's offer for DirecTV includes News Corp shares, the offer will have sunk in value and may no longer be attractive to General Motors, the owner of DirecTV parent Hughes.



News Corp's bid is also believed to include an estimated $6bn (£4.1bn) in cash, which has been raised from shareholders including Microsoft.



Media companies have been among the worst hit by the New York tragedy. Advertising revenues have fallen because TV stations have rearranged schedules and some ads are deemed inappropriate or insensitive and are being shelved for the time being.



DirecTV is the largest satellite broadcaster in the US with more than 10m subscribers. It is rivalled only by EchoStar, which has just more than 6m subscribers. EchoStar is also in talks with General Motors about a possible $32bn (£21.8bn) takeover of its larger rival.



News Corp's shares fell 3% yesterday in Sydney to A$12.05 (£4.06).




If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .



Topics

Claire Billings, recommends

News Corporation

Read more