Rivals Rupert Murdoch and John Malone settled a two year battle and made nice right before the holidays.
Murdoch’s News Corp. will swap its controlling stake in the satellite TV broadcaster DirecTV Group with Malone’s Liberty Media Corp. in exchange for Liberty’s 16% stake in News Corp., the companies announced today. Liberty’s stake is worth about $11 billion.
News Corp. will give Liberty its 38.4% stake in DirecTV, three regional sports cable networks and $550 million in cash. It is one of the biggest corporate buybacks in history.
Deal strengthens Murdoch’s hold on News Corp. and returns Malone to the television distribution business
The deal settles a long-simmering dispute between Murdoch and Malone, who surprised Murdoch two years ago by suddenly building up a large stake in the global media conglomerate that Murdoch built.