Financial Times FT.com

Bankrupt Pegasus falls prey to DirecTV

By Peter Thal Larsen in New York

Published: August 2 2004 19:19 | Last updated: August 2 2004 19:19

DirecTV, the satellite group controlled by Rupert Murdoch, on Monday moved to take greater control of its rural customers with a deal to buy Pegasus, its bankrupt rural distributor, for about $875m in cash.

The deal, which has been approved by a committee of Pegasus's creditors but is subject to approval by a bankruptcy court, comes two months after DirecTV terminated its distribution deal with Pegasus, forcing the company to file for Chapter 11.

DirecTV

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