erica, China, and East Africa through Hughes Telecom Americas of Sao Paulo, ChinaCast and AFSAT Communications Ltd., respectively. Ch-ch-changes General Motors attempted to sell Hughes to EchoStar Communications, but antitrust regulators blocked the deal on competitive grounds in October 2002, claiming the resulting merger would create a monopoly. The two sides worked to restructure the deal, but were again rejected in December 2002; they terminated the merger for good soon after. Hughes let go of nearly half of DIRECTV Broadband's employees, and closed its high-speed Internet service business, blaming the failed EchoStar merger for the cuts. GM regrouped, mulled over multiple offers, and eventually sold its interest in Hughes to Rupert Murdoch's News Corp. in September 2003. News Corp., the Sydney-based media giant, bought Hughes Electronics Corp. its and DIRECTV satellite subsidiary in December 2003 for $6.6 billion. Through the deal, News Corp. acquired 34 percent stake in Hughes Electronics, which it then transferred to its Fox Entertainment Group Unit for two promissory notes totaling $4.5 billion and 74.5 million Fox Entertainment shares valued at $27.99 each. Hughes closed its DIRECTV Broadband operation in 2003. Courtroom dramas During the summer of 2003, DIRECTV, along with EchoStar Communications Corp., took on the states of Ohio, Tennessee, and North Carolina in separate lawsuits contending a sales tax that had been placed on satellite television companies, but not on local cable television services. The sales tax was local cable operator's response to a competitive edge lost to faster-growing satellite services; EchoStar and DIRECTV declared the tax a direct violation of the Commerce Clause of the U.S. Constitution. No further information on the status of the suits was known as of this writing. In May 2004, DIRECTV won $62.6 million in damages after a federal jury ruled Pegasus Satellite Television Inc. and its Gold Sky Systems Inc. unit violated a marketing contract between the two companies. DIRECTV