Cleaning up the remnants of their ill-fated American Sky Broadcasting Inc. direct-broadcast satellite
venture, News Corp. paid ailing telecommunications company WorldCom Inc. $930 million in cash and stock to wind everything up.
WorldCom got $250 million in cash and News Corp. stock worth $680
WorldCom immediately resold the shares for $620 million after fees and a
slight market discount.
Highly leveraged WorldCom has been pounded in the telecommunications slump.
ASkyB was originally created by News Corp. and MCI Communications COrp., which WorldCom later
acquired, to bid on a DBS license being auctioned by the Federal Communications Commission.
After a rocky development process, the companies sold the license to EchoStar
Communications Corp. in exchange for stock, which was later sold.