The Wall Street Journal (WSJ) Online says the agreement, announced inside Microsoft in an email message sent to employees, indicates that Microsoft hopes to expand aggressively UltimateTV to foreign markets in coming years, despite a rather lackluster response to the fledgling service so far in the United States.
According to WSJ, the agreement comes as Murdoch, with expected financial support from Microsoft, is moving to wrap up lengthy negotiations to gain control of Hughes and merge its more than 10 million domestic subscribers into his global satellite network.
By teaming with Murdoch's Sky Global Networks, which broadcasts satellite-to-home programming to about 85 million homes outside the US, it says Microsoft seems determined to proceed with development of more-advanced interactive services and market them outside its arrangement with Hughes.
