Portals Gets DIRECTV Details from News Corp., Liberty
News Corp. and Liberty Media formally approached the Federal Communications Commission with their proposed transaction that would give John Malone's company a controlling stake in DIRECTV.
In a filing sent to the Portals, the companies said the transaction would address and even "eliminate concerns previously identified by the commission by reducing DIRECTV's vertical integration with must have broadcast and regional sports programming, while still enabling DIRECTV to draw upon Liberty Media's experience and expertise."
Also in the filing, the companies said Liberty, once it takes over the DIRECTV stake, would adhere to conditions placed on News Corp. concerning access to programming controlled by John Malone's company. That includes three regional sports networks Liberty Media is gaining from News Corp. through the transaction.
When similar conditions were placed on News Corp. when it took over DIRECTV, "The commission found these safeguards sufficient to address any potential competition-related concerns arising from News Corp.'s interest in DIRECTV, and the same conclusion should apply even more forcefully for Liberty Media," the companies said in their filing.
The companies also said the deal could address overall horizontal concentration concerns with a media company owning a video distribution platform.
"Unlike News Corp., Liberty Media does not own multiple broadcast stations and holds no attributable ownership interest in any broadcast television network," the companies said in the filing. "The proposed transaction will eliminate entirely several of the concerns expressed by the commission when News Corp. invested in DIRECTV several years ago, and greatly reduce other such concerns."
Observers of Liberty's DIRECTV takeover, citing the traditional maneuverings the deal must obtain from regulators, said they expect the transaction to be completed during the second half of the year.
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