Question-and-Answer Session
Operator
(Operator Instructions) Let's go to our first question from Aryeh Bourkoff – UBS.
Aryeh Bourkoff – UBS
Thank you very much and good afternoon. Very nice guidance for 2007. Seems like a lot of things are hitting on all cylinders. The first question is related to the guidance for 2007 with the strong EBIT growth. What's the underlying assumption for the FOX media segment for operating income? Is it assumed to be obviously profitable for the full year?
As a second question, Rupert if could you talk about DIRECTV. Obviously there's been a lot of speculation about any sort of merger with Dish on the strategic side, but are there any other options that you would potentially pursue for DIRECTV versus just merging with a satellite operator? Thank you.
Dave DeVoe
On the Fox and DIRECTV piece, I'll go quickly. We're not breaking out the results individually, but what I will say it will be a significant improvement over fiscal '06.
Rupert Murdoch
On DIRECT I would simply say that our prospects are for continued growth. In the last quarter, I recognize the figures were down but we have been changing most of our dealers, getting rid of a lot of dealers and selling more direct and selling a great more through our Advark allies. We think it's just fine.
As for a merger with EchoStar, we're not certain. We have had no negotiations at all. There have been a few friendly conversations but nothing to report.
Operator
Merrill Lynch's Jessica Reif Cohen has our next question.
Jessica Reif Cohen – Merrill Lynch
Thank you. We’ll put this under the category of possible events. Rupert, could you give us any kind of update on where things stand with Liberty and have your TV licenses been transferred into News Corp's name?
There’s been so much speculation on SKY Italia either being sold and you taking a piece of Telecom Italia or even possibly an IPO. What is your thinking about ownership of SKY Italia over the long term?
Rupert Murdoch
On the second part, SKY Italia, we're very proud of SKY Italia. It's doing well. We have no plans. There has been publicity which has been misinterpreted in that we have talked and are at the early stages in the supply of content to Telecom Italia as they move into broadband services. It's only been about content.
On Liberty, we don't wish to talk anymore about that. We are actively in talks with Liberty at this moment but I can't comment beyond that. I'm sorry.
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