GM Should Be Felating Murdoch For Buying DirecTV

In the neverending charade that is the Congressional hearing, Democrats were trying to do a little grandstanding at the expense of the potential new owner of DirecTV (See Ruppert Murdoch Defends DirecTV Purchase).

What these asshats forget is how royally GM screwed the pooch on this deal.

Just 2 years ago GM blindly accepted EchoStar’s $32 billion bid for DirecTV over a smaller News Corp bid. Still Murdoch was up there close to the EchoStar bid and had been in negotiations with GM for a long time. Any clown could see that a merger of the only two players in the satellite TV market in the US would invite regulatory intervention, and to no ones surprise that is exactly what happened. GM’s sell off strategy always seemed to be to find anyone available to bid up the price against Murdoch, who clearly wanted DirecTV.

Fast forward to last month and GM had pissed away billions in profit and finally sold a controlling stake in DirecTV to Murdoch for $6.8 billion. Hughes (the parent company of DirecTV) tracking shareholders are furious at the losses that they have had to absorb. GM clearly needed to cash out, but over the course of shopping the asset to everyone but the one man who really wanted it they managed to deflate the selling price massively. I think News Corp. should have let GM twist in the wind a little more, but at the end of the day they got their prize and GM is left holding the bag.

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