Liberty (LMDIA) Looking For Buyers For DirecTV (DTV)

Appointment of a new CEO at DirecTV Group Inc (NASDAQ: DTV) could be a signal for its possible takeover. Michael White, who was earlier with PepsiCo (NYSE: PEP), has no experience in pay TV, and is apparently a "baby-sitter" for the company until a possible takeover.

Both Verizon Communications Inc (NYSE: VZ) and AT&T Inc (NYSE: T) are seen as possible candidates for an acquisition. Most analyst feel so, since both these companies are already marketing partners with DirecTV and owning a satellite TV company would be cost saving and provide more leverage in program negotiations with cable TV networks.

The regulatory climate in Washington is going to be against more media consolidations as the Comcast (NASDAQ: CMCSA) –NBC(NYSE: GE) deal is on the docket. The only question here is whether regulators would allow a phone company to offer satellite TV services in markets they already have their own video offering.

Liberty Media (NASDAQ: LINTA) shareholders are set to vote on Thursday to approve a plan to split DirecTV from Liberty Entertainment (NASDAQ: LMDIA), a Liberty Media subsidiary, in preparation for a possible takeover. This parting will actually be beneficial to the parent company in terms of costs and tax savings.

Any deal will have to wait at least a few months as White does not take the helm at DirecTV until Jan 1.