Friday morning headlines

Satellite swap: Remember when Rupert Murdoch seemed almost obsessed with buying a U.S. satellite service that would serve as a prime distribution channel for News Corp. content? Well, he wound up with a controlling stake in DirecTV, but the satellite business has slowed considerably and now he's doing an about face - negotiating with John Malone's Liberty Media about a mega-swap. Under the deal, Malone would buy Murdoch's stake in DirecTV and give up Liberty's stake in News Corp. No one is talking on the record, but everybody has the story. LAT NYT
Interesting timing: Federal Communications Commission Chairman Kevin Martin said this week at an investor conference that not enough competition has developed to warrant a merger between El Segundo-based DirecTV and Echostar, the nation's two primary direct broadcast satellite carriers.

Chandlers settling?: Both the WSJ and the Chicago Tribune are reporting that Tribune Co. and the Chandler family are close to a settlement involving two controversial partnerships that have been at the center of the boardroom battle. The partnerships, dating back to Times Mirror days, allowed the Chandlers to diversify their holdings and save on taxes. But they would be a major tax hassle for Tribune in the event of a restructuring. And for now, the Chandlers remain Tribune's biggest shareholder. Meanwhile, the NYT catches up on Editor Dean Baquet's tough-talking stance against more cuts. Is he and publisher Jeff Johnson are calling Tribune's bluff?

Lower gas: The Auto Club's weekly survey has the average pump price in the L.A. area at $2.959 a gallon, 9.4 cents lower than last week, nearly 29 cents lower than last month and 2 cents lower than last year.

Blatant fraud: That's how a deputy director of the Public Utilities Commission describes fabricated reports by Southern California Edison that talked up the utility's customer service record and downplayed workplace injuries. The apparent motive was $94 million in manager bonuses. A unit of the PUC wants Edison to give the money back. The LAT's Elizabeth Douglass has the story.

Kooky California: The NYT's P1 takeout on the state's energy policy doesn't go that far, but the piece considers the greenhouse gas legislation about to be signed into law as a roll of the dice. "Whether all this is visionary or deluded depends on one’s perspective," writes Felicity Barringer. Deluded? Is anyone really saying that? At least the story notes that California is the thriftiest energy user in the country.

Redstone's revenge: Forget Wall Street's early concerns about the shakeup at Viacom. The stock is now a buy, with some investors convinced that the new management will be more aggressive in going after Web plays. WSJ says one reason for the interest is that Viacom shares are cheap compared with Disney and News Corp.

No NFL Network?: It's looking like the NFL Network will be dropped from the Time Warner Cable lineup at midnight tonight. Today was the deadline imposed by the FCC for the two sides to cut a deal, but an NFL Network spokesman said the contract talks are as "dead as they can be." That could become a little dicey later in ther season when the channel airs eight NFL games. The squabble centers on whether the NFL Network should be considered a premium channel.

Tower bidding: It will start just north of a paltry $90 million, which is further evidence of how bad things have gotten for the music retailer. In 1990, Forbes estimated that the company was worth $325 million. The opening bid establishes a floor for competing bidders to top. The auction is set for Oct. 5.

C-17 deathwatch: It's all but over, but Gov. Arnold Schwarzenegger is again asking Congress to figure out a way of funding the C-17. The governor sent a letter to U.S. Sen. John Warner, chairman of the Senate Armed Services Committee. The committee is working on the defense authorization bill.