FCC Staff OK with News Corp./DirecTV Deal

[Gregg Lengling]

Personnel with the Federal Communications Commission are expected to recommend conditional approval of News Corp.'s takeover of Hughes and DirecTV, Reuters reported late Tuesday.

One condition on the deal reported by Reuters was requiring the media giant and DirecTV to offer satellite-delivered local TV to an expanded slate of cities by the end of 2004. Another reported condition would require News Corp. to refrain from pressuring cable operators during disputes over carriage of News Corp.-controlled content, and referring any dispute to arbitration if a deal cannot be reached between the two sides.

The five FCC commissioners are expected to receive the formal staff recommendation soon. News Corp. also needs clearance from antitrust staff at the Justice Department for the transaction.