Associated Newspapers chairman Lord Rothermere bid £6m for the contract to distribute newspapers at London's rail and underground stations, trumping a £4.5m News International offer in an attempt to stop Murdoch launching a rival free paper.
However, the deal looks set to derail Rothermere's break-even timetable for the paper. The paper has already racked up losses of £28m, which are running at £4.1m a year when the disribution contract cost just £1.5m.
Analysts say the paper will need at least two more years before it has any chance of breaking even.
The news is likely to increase the pressure on Daily Mail & General Trust, which is facing concerns about its £1bn debt.
Last year, the publisher, which also owns The Evening Standard and The Daily Mail, had profits of £42.9m on sales of £2bn, reflecting an 8% drop in profits over five years.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
