Twenty-First Century Fox 2005 Annual Report Download - page 98

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
shared the same call center to sell advertising on a group basis. The net value of these transactions was $16 million for the period of July 1, 2004
through November 11, 2004, and $55 million and $56 million for the years ended June 30, 2004 and 2003, respectively.
During 2002, QPL had a loan outstanding with the Company of $89 million (A$170 million). This loan was fully repaid to the Company in
fiscal 2003. Interest related to the above loan was $3 million for the fiscal year ended June 30, 2003. In addition, QPL had funds on deposit with
News Limited, a subsidiary of the Company, in the amount of $16 million (A$30.5 million). This arrangement ceased in fiscal 2003.
Other related entities
In the ordinary course of business, the Company enters into transactions with related parties, such as equity affiliates, to purchase and/or sell
advertising, the sale of programming, administrative services and supplying digital technology and services for digital pay television platforms.
The following table sets forth the net revenue from related parties, excluding transactions with QPL, included on the consolidated statement of
operations:
2005 2004 2003
For the year ended June 30, (in millions)
Related party revenue, net of expense $743 $692 $349
The following table sets forth the amount of accounts receivable due from and payable to related parties outstanding on the consolidated
balance sheets:
2005 2004
As of June 30, (in millions)
Accounts receivable from related parties $228 $219
Accounts payable to related parties 55 35
Liberty Media Transactions
In March 2003, the Company and Liberty entered into an agreement under which Liberty had the right to purchase $500 million of the News
Corporation’s Class A shares at $10.75 per share. In October 2003, Liberty exercised their right and purchased $500 million of the News
Corporation’s Class A shares at $10.75 per share and the proceeds received were used to partially fund the acquisition of DIRECTV. As of
June 30, 2005, Liberty’s equity ownership in the Company is 19%.
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