New York: Some clear winners are emerging in the bidding war between Netflix and Paramount Skydance for Warner Bros Discovery: JPMorgan and Allen & Company. The two investment banks stand to make $90 million apiece for their work on the deal as advisers to Warner Bros, according to a securities filing released on Tuesday.
JPMorgan has already earned significantly more on top of that for its role financing a $17.5 billion bridge loan that allowed Warner Bros Discovery to cleave off its cable news networks and sports programming, including CNN, from its movie and television division, two people familiar with the deal said. They asked not to be named to discuss internal matters. JPMorgan declined to comment. Allen & Company did not return a request for comment.
The battle over Warner Bros escalated this week with a revised $83 billion offer from Netflix for its studio and streaming businesses. All eyes now turn to Paramount, whose $108 billion tender offer for the entire company closes on Wednesday. It is widely expected to at least extend its existing offer, while investors hope it will counter with even more money. Warner Bros, in the meantime, is spending hundreds of millions of dollars in fees to separate its two lines of business and sell the company.
