SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) March 1, 2000
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HUGHES ELECTRONICS CORPORATIONON
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(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 0-26035 52-1106564
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or organization) File Number) Identification No.)
200 North Sepulveda Boulevard
El Segundo, California 90245
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(310) 662-9688
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(Address, including zip code, and telephone number,
including area code, of registrants' principal executive office)
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ITEM 5. OTHER EVENTS
On March 1, 2000, Hughes Electronics Corporation (Hughes) issued the
following press release:
HUGHES TAKES STAKE IN SKYPERFECTV;
DIRECTV JAPAN SUBSCRIBERS TO BE MIGRATED
EL SEGUNDO, Calif., March 1, 2000 -- Hughes Electronics Corporation today
announced that DIRECTV Japan will add its 400,000-subscriber base to the more
than 1.7 million subscribers of SkyPerfecTV. As a result of the subscriber
migration, DIRECTV Japan's operation will be discontinued. As part of the
transaction, Hughes and other shareholders of DIRECTV Japan will take an equity
stake in SkyPerfecTV, which has announced that it expects to have an initial
public offering (IPO) later this year.
The financial impact of the transaction on Hughes, whether positive or
negative, is expected to be minimal and is not determinable at this time.
In addition to the announced transaction, Hughes will continue to record
its share of the losses incurred by DIRECTV Japan during this wind-down period
at a rate less than reported in the fourth quarter of 1999.
"Although subscriber growth of DIRECTV Japan was improving, we do not
believe it was sufficient to achieve our corporate objectives of being the
market leader in each of our key businesses while maximizing shareholder value,"
said Michael T. Smith, Chairman and CEO of Hughes. "This move makes SkyPerfecTV
a more powerful competitor to the terrestrial and satellite television
broadcasters in Japan, and provides a means for Hughes to participate in its
substantial growth potential."
Both DIRECTV Japan and SkyPerfecTV offer direct-to-home satellite service
that consists of video and audio channels beamed directly from a satellite to
small dish antennas. SkyPerfecTV provides over 180 channels while DIRECTV Japan
provides over 150 channels. DIRECTV Japan will supply its subscribers with
SkyPerfecTV receiving equipment at no cost to them.
Japan Digital Broadcasting Services, Inc., operator of the SkyPerfecTV
satellite service, in December announced that it would list its shares during
the fiscal year starting April 1. The shares will be listed on Mothers, a
section of the Tokyo Stock Exchange for high-growth and emerging stocks. As a
result of the transaction, Hughes will own a 6.8 percent interest in the new
company prior to the IPO, with the DIRECTV Japan shareholders owning a total
10.2 percent interest in the new company.
In addition to Hughes, DIRECTV Japan shareholders include Sotsu, Inc.;
Matsushita Electric Co., Ltd.; Tokuma Shoten Co., Ltd.; Mitsubishi Corporation;
Mitsubishi Electric Co., Ltd.; Space Communications Corporation; Dai Nippon
Printing Co., Ltd.; IBM Japan; and Orix Corporation.
SkyPerfecTV was established when PerfecTV, the nation's first digital
communications satellite (CS) broadcaster, and Japan Sky Broadcasting (JSkyB)
merged on May 1, 1998. Shareholders of SkyPerfecTV include Itochu Corp., Sony
Corp., Fuji Television Network Inc., News Corp., Softbank Corp., Japan Satellite
Systems Inc., Mitsui & Co., Sumitomo Corp. and Nissho Iwai Corp.
Hughes Electronics is a unit of General Motors Corporation and offers
DIRECTV digital entertainment services to more than 9 million subscribers
throughout the Western Hemisphere. The earnings of Hughes Electronics are used
to calculate the earnings per share attributable to the General Motors Class H
common stock (NYSE:GMH).
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HUGHES ELECTRONICS CORPORATION
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(Registrant)
By
Date March 3, 2000 /s/Roxanne S. Austin
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(Roxanne S. Austin,
Chief Financial Officer)
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