Consolidating the Directv Acquisition

Topics: Satellite television, Rupert Murdoch, Communications satellite / Pages: 7 (1502 words) / Published: Dec 7th, 2010
Case 7: News Corp. in 2005, Consolidating the DirecTV acquisition

The case focuses on the acquisition and consolidation of DirecTV by media mogul Rupert Murdoch’s News Corp. After the acquisition, Murdoch’s content-and-distribution empire spanned four continents, with more than 26 million subscribers. Murdoch, News Corp.’s chairman, had ambitions to build one of the most powerful media companies in the world. He aspired to have a balance between subscription and advertising revenue, the best mix of content and distribution and the widest geographic spread in the world.

There are a various aspects of the general environment firstly; the political/legal aspect of the general environment was initially most significant in the purchase of DirecTV by News Corp. FTC concerns of potential market concentration issues if EchoStar purchased DirecTV forced the two to drop discussion, paving the way for News Corp.’s purchase of DirecTV. Technology is probably the most important current aspect of the general environment. Secondly, Demographic segment Growing markets worldwide for various communication and entertainment media content. Thirdly, Socio-cultural segment largely due to rapid changes in technology, as well as increased overall globalization efforts, consumers are becoming increasingly sophisticated in the quality and type of communication and entertainment that they expect. Communication, news and entertainment provided by DirecTV and similar services have become viewed as nearly a necessity in a modern world. Fourthly, Economic segment while general economic conditions and level of economic development in a particular country or region may hinder some feasibility of these types of services, in general, they are needed and used by markets worldwide regardless of overall economic conditions. Fifthly, Political/legal segment The FTC, the government’s watchdog arm that oversees competition policy, is responsible for ensuring that consumers’ interests are

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