BSkyB spends £12m on News Corp negotiations

News Corporation's attempts to buy BSkyB have so far cost the satellite broadcaster £12m in administrative costs, according to figures filed today.

BSkyB spends £12m on News Corp takeover talks
BSkyB spends £12m on News Corp takeover talks
In BSkyB’s third quarter results for the first three months of 2011 it reported "costs of £12 million relating to the News Corporation proposal".

The ratcheting-up of negotiations between the two media giants in the last quarter is reflected in Sky spending an additional £5m on the deal, referred to as "administrative costs".

The multi-million pound costs come despite the deal having yet to be cleared of requiring further investigation from the UK regulators or a value being negotiated with BSkyB shareholders.

Culture secretary Jeremy Hunt is expected to make a decision on whether News Corp’s attempts to buy the 61% of BSkyB it does not already own needs to be referred to the Competition Commission in the coming days.

Sky's reported operating profit today was also affected by £26 million of restructuring costs attributed to Living TV, bought from Virgin Media in June.

The consolidation of the sale of airtime on Living TV contributed to BSkyB posting a 41% rise in advertising revenue to £348 million for the last nine months.


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