July 13, 2011 / 10:09 PM / 7 years ago

News Corp bankers lose $80 million on BSkyB deal

NEW YORK (Reuters) - News Corp’s phone hacking scandal will set Wall Street firms back by about $80 million in fees, and industry bankers said the banks have little chance of making it back from Rupert Murdoch any time soon.

News Corp withdrew an attempt to purchase the 61 percent of broadcaster BSkyB it does not already own for $12 billion after the UK government turned against the media giant.

Advisers to BSkyB included Morgan Stanley, UBS and Bank of America Merrill Lynch. News Corp was advised by Deutsche Bank and JPMorgan Chase & Co in the deal.

They were poised to collect a combined $90 million in advisory fees upon completion of the transaction, according to Thomson Reuters and Freeman Consulting.

The firms will likely collect only about 10 percent of the potential fee pool, Freeman estimates show.

BSkyB is still considered a strategic asset in which News Corp will remain a controlling shareholder, several media bankers not affiliated with the deal said.

“They are hoping the next point over the next 3 or 4 years, when things have calmed down, they will be in a position to come back (to the deal),” one banker said.

But given the uproar in Parliament over the hacking scandal and opposition to the deal, it could be some way off, if ever, that News Corp feels brave enough to try to buy the rest of BSkyB again, the banker said.

Reporting by Nadia Damouni; Editing by Tim Dobbyn

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