PanAmSat to Transmit Fox TV Programming

PanAmSat Corp., the largest U.S. commercial satellite operator, said it would transmit programming for News Corp.’s Fox TV networks, raising speculation that News Corp. would sell its controlling stake in PanAmSat.

News Corp. last year bought a 34% stake in PanAmSat’s parent company, El Segundo-based Hughes Electronics Corp., which owns 81% of Wilton, Conn.-based PanAmSat.

PanAmSat’s contract to carry Fox programming for the next 15 years could make it more attractive to prospective buyers, said Thomas Watts, an analyst at SG Cowen Securities Corp. in New York.

Separately, PanAmSat said its fourth-quarter net income fell 26% to $17.4 million, or 12 cents a share, from $23.6 million, or 16 cents, a year earlier. Revenue rose 11% to $217.6 million.

PanAmSat shares fell 10 cents to $20.52 on Nasdaq.