Media mogul John Malone has given up most of his voting control of satellite TV operator DirecTV Inc. and resigned from his role as board chairman, a move announced in April designed to comply with federal media ownership regulations.
The deal was necessary to satisfy concerns from the Federal Communications Commission about Malone controlling two TV signal providers that do business in Puerto Rico. The Malone family controls Liberty Global Inc., which owns Liberty Cablevision Puerto Rico.
As a part of the transaction, Malone, his wife and two trusts set up for his children exchanged 21.8 million Class B shares, which have 15 votes each, for 26.5 million Class A shares, which have one vote each. That cuts his voting stake to 3 percent from 24.3 percent.
Malone, Paul A. Gould and Gregory B. Maffei also resigned as members of the board. President and CEO Michael D. White will take on the additional role of chairman. Samuel A. DiPiazza, Jr., has been elected to serve as a director, effective immediately. DiPiazza, age 59, most recently served as global CEO of PricewaterhouseCoopers International Ltd.
The transaction was completed after receiving required regulatory approval from the Federal Communications Commission (FCC). The FCC approval order also confirms that DIRECTV has now satisfied a condition relating to DIRECTV's subsidiary in Puerto Rico, imposed by the FCC in February 2008 in connection with the acquisition by Liberty Media Corporation of its interest in DIRECTV. As a result, DIRECTV Latin America will be permitted to remove its Puerto Rican operations from a trust which had been established in 2009.
DIRECTV also announced that Samuel A. DiPiazza, Jr. has been elected to serve as a member of the Board of Directors effective June 17, 2010, and that Michael D. White has been elected as Chairman of the Board of Directors. Mr. White will continue to serve as President and CEO of the Company.