HomeInvestmentFunding Banks Obtain Over $ 320 Million From Sale Of WarnerMedia Discovery

Funding Banks Obtain Over $ 320 Million From Sale Of WarnerMedia Discovery


Funding banks acquired greater than $ 320 million from AT&T’s WarnerMedia sale to Discovery, simply 5 years after lots of the identical consultants acquired big royalties from the sale of a media group to a US telecommunications firm.

AT&T agreed to spin off and merge WarnerMedia with rival Discovery earlier this yr at a considerably lower cost tag than it paid to accumulate the leisure group in 2016.

New York-based boutique financial institution Allen & Co acquired $ 75 million for its Discovery providers, whereas bankers at JPMorgan raised $ 15 million in consulting work and one other $ 140 million in monetary providers, in line with a trusted Discovery assertion.

WarnerMedia’s consultants included Goldman Sachs, which acquired $ 47.8 million, and LionTree, a service provider financial institution, which Refinitiv estimated raised $ 43.1 million.

5 years earlier, bankers together with Allen & Co and JPMorgan had raised $ 234 million after AT&T agreed to purchase WarnerMedia – then known as TimeWarner – for $ 85 billion, in line with Refinitiv.

Allen & Co, a modest firm with no web site, acquired $ 50 million for advising WarnerMedia on the sale of AT&T, whereas Citigroup and Morgan Stanley raised $ 50 million and $ 40 million, respectively. JPMorgan, Perella Weinberg Companions and Financial institution of America raised $ 31.2 million in advisory providers for AT&T.

AT&T executives acquired $ 9 million in bonuses for the now unselected acquisition.

Wall Road banks this yr noticed report charges in extra of $ 100 billion in advising on mergers and acquisitions, due to a transaction growth that surpassed the $ 5 trillion mark for the primary time.

Media offers have been one of many predominant engines of the growth as corporations search to compete with streaming providers equivalent to Netflix. Earlier this yr, Amazon purchased MGM, the James Bond movie studio, for $ 8.5 billion.

AT&T’s take care of Discovery, which creates a $ 132 billion firm, underscores the velocity at which conventional media teams are searching for to compete in streaming wars. Commissions charged by funding banks spotlight the profitable advantages provided to purchasers for getting into into and terminating transactions.

The deal, spearheaded by AT&T CEO John Stankey and David Zaslav of Discovery, will mix Discovery’s catalogs, which vary from nature to historical past, with precious media belongings together with Warner Bros Studios, the HBO community behind the sequence. Continuityin addition to cable TV channels together with CNN.

JPMorgan, Goldman Sachs and LionTree declined to remark. Allen & Co doesn’t have media contact particulars.



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