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 mediapost.com.
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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