Friday, August 2, 2013

Arbitron Spends Millions On Nielsen Buy

It’s not cheap working to get the government to clear a high-profile transaction. As Arbitron worked to gain acceptance for its proposed   Nielsen deal, it incurred $6.1 million in expenses in the April-June period, according to David Goetzl at

Year-to-date, the company has spent $9.4 million in hiring consultants, lawyers and other expenses looking to persuade the Federal Trade Commission (FTC) to allow Nielsen to buy it for $1.26 billion. Of course, that's on top of all that money spent last year before the deal was announced.

Then again, that's where shareholders stand to get about a 26% premium on the share price the day before the acquisition was announced late last year.

With the acquisition-related expenses a drag, Arbitron’s net income dropped to $7.1 million in the second quarter, down from $10 million last year in the period. Revenue rose 2.9% to $107.4 million.

Like Nielsen, Arbitron has had to answer a second request for information from the FTC as the agency evaluates the merger’s market impact. An indication of the government’s stance is expected this month.

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