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Liberty Media's CEO Robert Bennett has been quoted in a Reuters
report saying that News Corp would be the preferred partner. Rupert
Murdoch has been trying for quite a while now to get his hands on
DirecTV as this would give News Corp the missing piece of a global
satellite network. It would be financially advantageous for the
two parties to proceed together as opposed to launching separate
bids.
Earlier this year, the proposed merger between Echostar and Hughes
fell through. This was because the US anti-trust officials felt
that consumers in rural areas without access to cable TV would have
no choice but to subscribe to the merged group's services.
The federal communications commission (FFC) had voted unanimously
to oppose the merger. The merger would have created the largest
pay TV service. The FCC should not have a problem if General Motors
is favourable towards the joint bid as News Corp does not have a
strong presence in the US satellite market.
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