Shareholders approved the formation of a new company out of DirecTV Group Inc. and some of Liberty Media Corp.’s entertainment businesses, as the chairman of both firms dampened speculation about a sale to a big phone company.
Media mogul John Malone told The Associated Press that he could see the new DirecTV, the nation’s largest satellite- TV provider, collaborating more closely with phone companies to offer Internet and phone services that compete with cable-TV operators. But he was vague on whether he would seek a sale.
“We do bundling. We do product development directly with them. It’s a major source of new subscribers for DirecTV,” he said. “Whether it would lead to consolidation, that’s speculation.”
Malone also said he hadn’t expected to name a new DirecTV chief executive who had no experience in the satellite-TV business, but he ultimately chose a soft-drink exec for his “great leadership capabilities.”
On Wednesday, DirecTV chose Michael White, vice chairman of PepsiCo Inc. and CEO of PepsiCo International, to be its chief executive, replacing Chase Carey, who left to be president and chief operating officer of News Corp.
White “doesn’t know a whole heck of a lot about satellite TV,” Malone said. “On the other hand, he has enormous experience in consumer marketing, building businesses internationally, and he’s also very strong financially.”
The deal approved Thursday by shareholders of Liberty and DirecTV calls for Liberty to shed its 54 percent stake in DirecTV, along with its regional sports networks in Seattle, Denver and Pittsburgh and a 65 percent stake in the Game Show Network and Fun Technologies, a provider of online sports games and information.
