In a deal that has seemed to be happening for years, News Corp. (NWS-A) and Liberty Media finally reached agreement on the largest share buyback in company history. After two years the two Liberty Media agreed to trade its $11 billion stake in News Corp. in exchange for control in Satellite TV provider DirecTV (DTV).
Both should be winners in the deal as Murdoch removed the cloud of influence and potential problems of Malone's huge stake in the company, while Malone returns as a bigger player in the U.S. programming and distribution market.
The terms of the deal were that News Corp. would exchange its 38.4 percent stake in DirecTv Group, plus $550 million in cash, plus three regional sports networks (FSN Northwest, FSN Pittsburgh, and FSN Rocky Mountain), for Liberty Media's 16.3 percent stake in News. Corp.
Essentially what it all amounts to is an $11 billion stock buyback for News Corp., one of the biggest in corporate history. The deal should officially close in the second half of 2007.
The deal is still subject to regulatory approval and shareholder vote.
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