Sky Global Aims to Merge Into U.S. Company

News Corp. hopes to merge its Sky Global Networks Inc. unit into a U.S. satellite broadcaster such as DirecTV or EchoStar Communications Corp., Chairman Rupert Murdoch told CNBC Australia. If successful, News Corp. might scrap plans for Sky Global’s initial public offering because the unit’s assets would become part of an already publicly traded company, Murdoch said. News Corp. is considered the leading contender for Hughes Electronics Corp.’s DirecTV unit, the No. 1 U.S. satellite-TV provider. Hughes parent General Motors Corp. has said it is in talks to sell or spin off the unit, which could fetch more than $40 billion, analysts estimate. Murdoch also suggested that News Corp. might do a so-called reverse takeover with Hughes, meaning that Hughes would buy Sky Global assets and fold them into DirecTV. News Corp. would control most or all of the merged entity while having minority ownership. Hughes is “still entertaining all the possibilities,� said spokesman Richard Dore. EchoStar wasn’t immediately available for comment. On the NYSE, News Corp.’s American depositary shares, each representing four ordinary shares, fell $1.19 to close at $37.94, and Hughes shares fell 40 cents to close at $25.86. EchoStar shares were unchanged at $30.88 on Nasdaq.