DirectTV buys back shares in takeover threat

DirectTV, the biggest satellite TV supplier in the US, has approved the repurchase of up to $1 billion in common stock.

The buy back would allow the company to reign in over 50 million shares at its current share price.

This would add to the $5 billion in stock purchased since February 2006.

The move is perceived as a way to ensure the company retains control of its operational decisions.

This is not least while regulators in the US consider a buyout of Newscorp’s interests by Liberty Media, run by cable billionaire John Malone, which represents around 39% of DirectTV corp’s shares.

By buying up more of its own stock, the company may be trying to ensure that they can prevent an aggressive takeover, should Libert Media try to increase its holdings.

Story link: DirectTV buys back shares in takeover threat