http://www.bbc.co.uk/news/entertainment-arts-26287377

I suspect someone did their legal fee sums, added in the bad publicity and potential for an embarrassing apology, then decided 85k was cheaper all round. Especially for an 'institute' and two journos. I couldn't argue it should have been paid though.

They probably settled because they may have lost or the costs could have been very much higher if they had lost. It is more a matter of cutting their losses. Though it does look to the public that these people are not homophobic, when they could very much be.