Malone completes deal to reduce DirecTV control, steps down as chairman to satisfy regulators

Malone steps down as DirecTV chairman

EL SEGUNDO, Calif. — 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.

Executive search firm Heidrick & Stuggles International Inc. continues efforts to identify potential candidates to fill the remaining board vacancies.

Shares of DirecTV fell $1.53, or 3.9 percent, to $37.80 in afternoon trading.