The Conditions on DIRECTV/Liberty Transaction

The Federal Communications Commission's approval of Liberty Media's takeover of a stake in DIRECTV has strings attached.

There are two core conditions on the deal.

With the first, the FCC's order on the transaction requires that Liberty and DIRECTV abide by program access, program carriage, regional sports network arbitration and retransmission consent arbitration conditions. The conditions are modeled on similar conditions imposed in 2003 when the FCC approved the transfer of DIRECTV from Hughes to News Corp.

In addition, the FCC is requiring that all of attributable ownership interest connecting DIRECTV Puerto Rico and Liberty Cablevision of Puerto Rico to be severed within one year. At that point the companies must certify that they have reduced the relevant interests to a non-attributable level or that they have filed any applications necessary to divest assets, the FCC said.