DirecTV to Merge With Liberty Media's Entertainment Unit

Authored by Mark Hefflinger on May 4, 2009 - 7:30am.

El Segundo, Calif. - Satellite TV operator DirecTV (NASD: DTV) announced on Monday that it plans to mere with the entertainment unit of Liberty Media (NASD: LINTA), which will be spun off into a separate, publicly-traded company. The deal will give John Malone's Liberty Media a 54% controlling stake in DirecTV, up from 48% prior to the transaction.

"Our existing equity structure was less than ideal. The transaction will improve our ability to pursue strategic initiatives that can enhance value for all DirecTV shareholders," said DirecTV president and CEO Chase Carey.

"We look forward to having the benefit of John Malone's involvement, as a significant shareholder and as chairman of DirecTV's board post-merger."

In addition to the satellite TV operations, as a result of the deal DirecTV will now own Liberty's Game Show Network, game developer FUN Technologies and several regional sports networks.

http://snipurl.com/hchbh (AP)

http://www.directv.com

http://www.libertymedia.com