 | |
| Company type | Subsidiary |
|---|---|
| Industry | Electronics |
| Predecessor | Delco Electronics Hughes Aircraft |
| Founded | 1985; 40 years ago (1985) |
| Defunct | 2003; 22 years ago (2003) |
| Fate | Purchased byNews Corporation, and rebranded as The DirecTV Group |
| Successor | The DirecTV Group |
| Headquarters | United States  |
| Parent | General Motors |
| Subsidiaries | |
Hughes Electronics Corporation was formed in 1985, whenHughes Aircraft was sold by theHoward Hughes Medical Institute toGeneral Motors for $5.2 billion. Surviving parts of Hughes Electronics are today known asDirecTV Group, while the automotive divisions becameAptiv.
On June 5, 1985,General Motors was announced as the winner of a secretive five month, sealed-bid auction. Other bidders includedFord Motor Company andBoeing.[1] The purchase was completed on December 20, 1985, for an estimated $5.2 billion, with $2.7 billion in cash and the remainder in 50 million shares of GM Class H stock.[2] On December 31, 1985, General Motors merged Hughes Aircraft with its Delco Electronics unit to form Hughes Electronics Corporation, an independent subsidiary.[citation needed]
In August 1992, Hughes Aircraft completed its purchase ofGeneral Dynamics' missile businesses for $450 million.[3] This brought theTomahawk Cruise Missile,Advanced Cruise Missile,Standard missile,Stinger missile,PhalanxClose-in weapon system, andRolling Airframe Missile into Hughes' portfolio.
In 1994, Hughes Electronics introduced DirecTV, the world's first high-poweredDBS. In 1995, Hughes Electronics' Hughes Space and Communications division became the largest supplier of commercial satellites. That same year, the group purchasedMagnavox Electronic Systems from theCarlyle Group. In 1996, Hughes Electronics andPanAmSat agreed to merge their fixed satellite services into a new publicly held company, also called PanAmSat, with Hughes Electronics as majority shareholder.
In 1995, Hughes Aircraft sold its Technology Products Division (automated wire and die bonder) to an investor group led byCiticorp, and incorporated the division as Palomar Technologies.[4] In 2008, Citicorp sold the bonder division to the current management team at Palomar Technologies.[5]
In 1997, GM transferred Delco Electronics to itsDelphi Automotive Systems business. Later that year, the assets of Hughes Aircraft were sold toRaytheon for $9.5 billion.[6] The remaining companies remained under the Hughes Electronics name and within GM.
In 2000, Boeing purchased three units within Hughes Electronics Corp.: Hughes Space and Communications Co.,Hughes Electron Dynamics, andSpectrolab Inc., in addition to Hughes Electronics' interest in HRL, the company's primary research laboratory. The four joined Boeing Satellite Systems, a company subsidiary, later becoming the Satellite Development Center, part of Boeing Integrated Defense Systems.[7]
In 2003, the remaining parts of Hughes Electronics (DirecTV, DirecTV Latin America, PanAmSat, Hughes Network Systems) were purchased byNews Corporation from GM and renamedThe DirecTV Group.
