While Netflix and Paramount Skydance make the news with big numbers, the real winners in the Warner Bros Discovery bidding war are not streaming giants or studio executives. Two investment banks, JPMorgan Chase and Allen & Company, are instead getting huge fees for advising Warner Bros Discovery.
According to a securities filing released this week, each bank stands to earn $90 million in advisory fees alone, regardless of which bidder ultimately secures the storied entertainment company. As the Warner Bros Discovery bidding war intensifies, Wall Street’s reward system is already locked in.
The Advisors Who Always Win
Advisers set up deals, manage risks, and most importantly, get paid in any high-stakes takeover. JPMorgan’s role in the its bidding war goes far beyond what it usually does for M&A.
The bank has already made $189 million in fees and interest for setting up a $17.5 billion bridge loan that let its separate its cable networks and sports assets, like CNN, from its film and TV studios.
Insiders say that deal was the biggest non-investment-grade bridge loan ever made on Wall s Street. It set the stage for the current bidding war over Warner Bros Discovery.
A Battle Escalates
The Warner Bros Discovery bidding war escalated sharply this week after it submitted a revised $83 billion offer for the studio and streaming businesses. The proposal values Warner Bros Discovery’s vast content library and intellectual property at a premium
Attention has now shifted to Paramount Skydance, whose $108 billion tender offer for the entire company is set to expire Wednesday. Market participants widely expect Paramount Skydance to extend or sweeten its bid, further heating the Warner Bros Discovery bidding war.
Why Warner Bros Discovery Is a Crown Jewel?
Analysts say that the bidding war for its being driven by assets that don’t come up for sale very often. The company owns HBO Max, the Harry Potter series, Game of Thrones, and DC Comics’ famous superheroes, such as Batman and Superman.
In a crowded global streaming market, both Netflix and Paramount Skydance would benefit from buying Warner Bros Discovery because it would give them scale, legacy IP, and long-term franchise value.
Inside the Fee Breakdown
JPMorgan’s total compensation from its bidding war is expected to reach $282 million, according to the filing. This includes:
- $189 million from financing and bridge-loan-related fees
- $15 million for fairness opinions on Its offers
- $30 million in additional M&A fees by December 1
- $45 million payable once the deal closes
Allen & Company, on the other hand, is on track to make at least $90 million, which includes fees for fairness opinions, advisory work, and closing bonuses. Paul Gould, a member of the Warner Bros. Discovery board, is a managing director at Allen & Company. However, the company says he is not involved in transaction advisory work.
The Hidden Cost of the Warner Bros Discovery Bidding War
IT is spending hundreds of millions of dollars to split up its businesses and make it easier to sell them. Investors are paying attention to the value of the companies and how well they fit together. The costs of bond buybacks, advisory fees, and financing show how expensive the Warner Bros Discovery bidding war has become.
But for Walls Streets advisors, the outcome is already clear: the banks have won, no matter who wins.
Final Word
The Warner Bros Discovery bidding war could change the future of Hollywood and streaming around the world, but the first winners are firmly in Manhattan boardrooms. JPMorgan and Allen & Company have shown once again that in big deals, advisers always get paid first. This is because Netflix and Paramount Skydance are fighting for movie dominance.
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