Mr Rupert Murdoch's News Corporation has agreed to buy America's largest satellite television provider.
It will acquire control of Hughes Electronics Corp and its DirecTV service in a €6.3 billion cash and stock deal.
The proposed deal will give News Corp access to DirecTV's 11 million-plus subscribers and give Murdoch a US outlet for his global satellite television network.
News Corp will acquire 34 per cent of Hughes, a subsidiary of General Motors, by purchasing 19.9 per cent of Hughes shares owned by GM. News Corp will also offer to buy 14.1 per cent of Hughes shares owned by the public.
News Corp will pay $14 a share, making the deal worth about $6.6 billion. The company will then transfer its interest in Hughes to its Fox Entertainment Group subsidiary, which includes the Fox News Channel.
Mr Murdoch, whose News Corp also owns other media entities, says the deal will increase competition in the cable markets and provide better services to US viewers.
"With Fox taking a significant interest in Hughes, we are forging what we believe will be the premier diversified entertainment company in America today, with leading assets in film, television broadcasting and production, cable programming, and now pay-TV distribution," he said.
GM president and chief executive Mr Rick Wagoner says his company "is pleased to have reached an agreement with News Corp that provides substantial value to our stockholders".
The News Corp deal is subject to regulatory approval.
PA