DirecTV and Liberty Media Merge

DirecTV and Liberty Media Corporation today announced that they have entered a definitive agreement to combine the two companies.

"We are pleased to announce this transaction as it will rightly put the control of DIRECTV in the hands of DIRECTV shareholders," said Chase Carey, President and CEO of DIRECTV. "Our existing equity structure was less than ideal. The transaction will improve our ability to pursue strategic initiatives that can enhance value for all DIRECTV shareholders. Additionally, in Game Show Network, FUN Technologies and the three regional sports networks, we are acquiring valuable assets that fit in well with the future of the DIRECTV business. We look forward to having the benefit of John Malone's involvement, as a significant shareholder and as chairman of DIRECTV's board post-merger.

"This transaction clarifies DIRECTV's capital structure, reduces its shares outstanding, eliminates stock overhang and arbitrage issues, and provides DIRECTV with strategic content businesses," said Greg Maffei, President and CEO of Liberty. "And this transaction offers value to Liberty's shareholders by eliminating the discount in our tracking stock structure and allowing them to continue to participate directly in the strong performance of DIRECTV."

In other DirecTV news, the satellite provider is now offering most movies in 1080p, the highest resolution format available for HD video and the same format used by Bluray movies.

The movies available this month include: Transporter 3, Twilight, Madagascar: Escape 2 Africa, Changeling, Body of Lies, Milk, Vicky Christina Barcelona, Dark Knight, Zack and Miri Make a Porno and Wanted. New HD VOD titles such as Slumdog Millionaire, The Wrestler, Marley & Me and Quantum of Solace will also be available in 1080p when they premiere on DIRECTV on DEMAND.

"This is fantastic news for all of our HD customers because DIRECTV HD in 1080p will enhance the HD viewing experience even if they don't have a 1080p-compatible HDTV, and all HD DVR customers will have access to 1080p titles," said Eric Shanks, executive vice president, DIRECTV Entertainment. "As the HD leader, we continue to push the envelope with unmatched HD quality and breadth of content. By offering the largest selection of 1080p titles, we further strengthen DIRECTV's position as the premier destination for the most compelling and complete lineup of HD content."