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Liberty Looks to Leverage DirecTV Deal

In for a tough battle with better positioned telcos, cable companies

By Jim O'Neill,  Newser User

Posted Feb 28, 2008 9:26 AM CST

(Newser) – Closing Liberty Media’s $12 billion deal for a 41% share of DirecTV took more than a year, but positioning the satellite-TV service to rival telcos and cable companies offering triple-play packages of TV, phone, and broadband could be a bigger test, reports the Wall Street Journal today. The deal with News Corp was finalized yesterday after the FCC OK’d it.

The satellite-TV industry, hamstrung by an inability to provide cheap phone and Internet service, has seen its growth slowed as telephone and cable companies offer full-service packages to homeowners at competitive prices. Liberty execs contend DirecTV’s HD programming and sports offerings puts them in a strong position. This year DirectTV launches on-demand video over the Internet, a response to cable pressure.

Gregory Maffei, President and CEO of Liberty Media Corporation.
Gregory Maffei, President and CEO of Liberty Media Corporation.   (Associated Press)
John C. Malone, chairman of the board of Liberty Media, speaks during a stockholders meeting for the company in this file photograph taken on Wednesday, June 9, 2004, in the south Denver suburb of Centennial, Colo.
John C. Malone, chairman of the board of Liberty Media, speaks during a stockholders meeting for the company in this file photograph taken on Wednesday, June 9, 2004, in the south Denver suburb of Centennial,...   (Associated Press)
The DirecTV building is seen in El Segundo, Calif. in this Aug. 8, 2006 file photo. Liberty Media bought a 41% share in the satellite-TV company in a deal with Media Corp finalized yesterday.
The DirecTV building is seen in El Segundo, Calif. in this Aug. 8, 2006 file photo. Liberty Media bought a 41% share in the satellite-TV company in a deal with Media Corp finalized yesterday.   (Associated Press)
DirecTV dishes adorn the wall of an apartment building in Los Angeles, in this Feb. 7, 2007 file photo. DirecTV Group Inc. is the nation's largest satellite TV operator.
DirecTV dishes adorn the wall of an apartment building in Los Angeles, in this Feb. 7, 2007 file photo. DirecTV Group Inc. is the nation's largest satellite TV operator.   (Associated Press)
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