A new moniker for Hughes Electronics
DirecTV Group better reflects satellite TV interests, owner News Corp. says.
By David S. Cohen -- Video Business, 3/17/2004
MARCH 17 | Hughes Electronics, the operator of the DirecTV satellite service, has changed its name to the DirecTV Group Inc.
The change, coming after News Corp. gained a controlling interest in Hughes, is intended to better reflect the company's core business as a satellite entertainment company. "The future of this company is centered on DirecTV, and DirecTV will drive both our strategy and shareholder value going forward," CEO Chase Carey said in a statement.
Starting Wednesday, the company's ticker symbol has changed to DTV. The Hughes Electronics' Web page has changed its address to DirecTV.com, and there's a new logo.
The move is expected to be just the first of many now that Rupert Murdoch's News Corp. controls the company. News Corp. has set aggressive targets for the DirecTV service, including the addition of 1 million new subscribers in 2004.
On Monday, News Corp. announced that it was bringing DirecTV ad sales in-house under the direction of Twentieth Television, its syndication group.
DirecTV has 12.2 million subscribers and sells set-top boxes and other equipment. Its other business units, including DirecTV Inc., Hughes Network Systems, DirecTV Latin America and PanAmSat, will remain units of the DirecTV Group.
In December, News Corp. bought out General Motors' 19.8% interest in Hughes Electronics and acquired an additional 14% from stockholders. News Corp. then transferred that interest to its subsidiary, the Fox Entertainment Group.
Hughes Electronics traces its routes to 1932, when millionaire inventor, aviator, industrialist and movie producer Howard Hughes launched Hughes Aircraft. The company was a major supplier of military hardware during World War II and for decades afterward, eventually moving into space and satellites. General Motors acquired the company in 1985 and merged it with Delco Electronics to create Hughes Electronics.
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