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Murdoch Lets His 'Turd Bird' Fly Away

from the fly-turd-bird-fly dept

Thu, Dec 7th 2006 1:15pm — Karl Bode

A miserably kept rumor since September, it looks like Rupert Murdoch is going to be trading his 38% stake in DirecTV to Liberty Media for their 19% stake in News Corporation. Since last year, Murdoch has been dropping hints about a billion-dollar broadband play. The assumption was they'd use the DirecTV brand to create a nationwide WiMAX network, possibly after merging with Echostar. Obviously throwing up a WiMAX network isn't like pitching a tent, and Murdoch found plenty of obstacles in his quest to break into the coordinated duopoly that is the American broadband industry. FCC chief Kevin Martin hinted that he wouldn't approve a DirecTV-Echostar merger, despite the fact he's never met a massive telco merger he didn't like. Then DirecTV and Echostar were effectively bullied out of the recent FCC AWS (advanced wireless services) spectrum auction. Once it was clear Murdoch couldn't turn DirecTV into a broadband and content powerhouse, he threw up his hands, called the entire company a "turd bird" (really), then began speeding up the transfer to Liberty Media. Executives may just have to face the fact DirecTV isn't destined to break into the broadband business, especially if you consider they've failed at offering satellite via broadband, failed at offering DSL, and couldn't scrap together the spectrum necessary to launch a WiMAX network. Liberty execs say that once they control DirecTV they'll explore broadband possibilities via companies they own, such as WildBlue Communications. WildBlue is simply another high-latency satellite broadband provider however, so it's unclear what exactly Liberty plans to do differently.

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7 Comments

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Anonymous Coward, 7 Dec 2006 @ 2:33pm

hmmm... DirecTV is still around?
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Happy direct tv user, 7 Dec 2006 @ 3:07pm

direct tv is fine
I'm happy with my direct tv service. Never had problem with service. I had a few bill problems, but I called and talked to some who spoke real English in 1 minute.
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Mike, 7 Dec 2006 @ 4:08pm

When I moved to Los Angeles from Orange County, I was stuck with adelphia cable. The modem speeds were horrendous, the tv would go out every 4 or 5 days, and their lineup was pathetic. I switched over to DirecTV and I get almost twice as many channels for 70% of the cost i was paying. I also get NFL network which is non-existent on cable out here.

I can't imagine going back to cable now. I guess that's the problem, cable wants to do so many things they forgot how to do the basic thing well. DTV may not have braodband service or voip or anything, but it does what I want it to.
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Justin, 7 Dec 2006 @ 4:27pm

Loved DTV for 6 years now ...
I had mediaone/comcast (or whoever it was in the past) previous to getting direct tv. I love my REAL Tivo dvr ... I've never had a moments problem with the service, or customer service. If I need to speak to someone I call and get right through in less than a minute.

In that same span of time I've been through bell south, Comcast, and clear wire for broadband and I hate them all. If their service was half as good as DTV I would be happy.

Just in the last month my parents signed up for Comcast digital service and they have called an average of 2 times a week for 4 weeks problems ... and that's not an exaggeration.
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Cleverboy, 7 Dec 2006 @ 5:49pm

Spruce Goose
Hm... Bird Turd... Spruce Goose... Direct TV. Hm. Kind of fitting really.
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Mudgy, 7 Dec 2006 @ 7:24pm

Adelphia...
... was bought out by Time Warner in O.C. So far, it's much better.
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JC, 8 Dec 2006 @ 4:55am

We've had DTV for nearly ten years and we love it. I wish their broadband was a bit more affordable because we'd switch from RoadRunner to DTV in a heartbeat. In a small town there is often no real competition to RR broadband and the rates remain much higher than the rest of the country. It would be nice to introduce DTV as a reasonable alternative.
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