Banks emerge big winners in Warner Bros sale battle
JPMorgan and Allen & Company are set to walk away as the biggest winners in the intensifying battle over Warner Bros Discovery, earning massive advisory and financing fees regardless of whether Netflix or Paramount Skydance secures the deal.
According to a securities filing released Tuesday, the two investment banks will receive $90 million each in M&A advisory fees for their work on the Warner Bros transaction. On top of that, JPMorgan has already earned $189 million in financing and related fees tied to a $17.5 billion bridge loan that enabled Warner Bros to split its cable networks and sports assets — including CNN — from its movie and television business ahead of a sale, News.Az reports, citing Reuters.
The bidding war escalated this week after Netflix submitted a revised $83 billion offer for Warner Bros’ studio and streaming units. Attention now shifts to Paramount Skydance, whose $108 billion tender offer for the entire company is due to close Wednesday. Market observers expect Paramount to extend or potentially increase its bid.
As the competition unfolds, Warner Bros continues spending hundreds of millions of dollars to separate its business divisions and prepare for a potential takeover.
JPMorgan’s total earnings from the Warner Bros transaction could reach $282 million, combining bridge-loan fees, fairness opinion payments, and final deal-closing compensation. The bank has also received additional payments from Netflix over the past two years for related advisory services.
Allen & Company is also positioned to collect at least $90 million, cementing both firms’ status as the deal’s guaranteed financial winners — no matter which media giant ultimately acquires Warner Bros and its prized assets, including HBO Max, Harry Potter, Game of Thrones, and DC Comics franchises.
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