In a deal announced April 9, Rupert Murdoch's News Corp., part owner of TV Games Network parent Gemstar-TV Guide, would acquire General Motors' stake in Hughes Electronics and another piece of Hughes from public shareholders.
According to a release from News Corp., the businesses contained in Hughes include DIRECTV, a satellite broadcast company with 11 million subscribers in the United States. TVG recently announced a deal with DIRECTV that will give the interactive horse racing network more coverage.
When the deal closes, News Corp.'s 34% ownership interest will be transferred to Fox Entertainment Group, a News Corp. subsidiary. Murdoch will become chairman of Hughes.
"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," Murdoch said in a prepared statement. "The alignment of Fox's valuable content assets and DIRECTV's distribution platform will provide significant benefits to consumers and greatly enhance the future businesses of both companies."