JPMorgan and Allen & Company Emerge as Big Winners in Warner Bros Discovery Bidding War

JPMorgan Chase and Allen & Company have emerged as clear financial winners in the high-stakes bidding war involving Netflix and Paramount Skydance for Warner Bros Discovery, securing massive advisory and financing fees regardless of which bidder ultimately prevails.

According to a securities filing released Tuesday, both JPMorgan and Allen & Company are set to earn $90 million each in merger and acquisition advisory fees for their roles advising Warner Bros Discovery. These fees are guaranteed no matter whether Netflix or Paramount Skydance acquires the media giant’s prized assets, which include HBO Max, DC Comics, “Game of Thrones,” and the “Harry Potter” franchise.

JPMorgan’s total compensation goes far beyond standard M&A advisory work. The bank has already earned $189 million in financing and related fees tied to a complex $17.5 billion bridge loan that enabled Warner Bros Discovery to separate its cable news and sports assets, including CNN, from its film and television studio business. Sources familiar with the deal say the transaction involved one of the largest non-investment-grade bridge loans ever issued on Wall Street.

In total, JPMorgan stands to make approximately $282 million from its work with Warner Bros Discovery. This includes $15 million for fairness opinions on Netflix’s initial and revised offers, up to $30 million in additional advisory fees by December, and another $45 million upon the deal’s closure. Netflix has also paid JPMorgan an extra $3 million in fees over the past two years.

Allen & Company is also positioned for a lucrative payout of at least $90 million. The boutique investment bank has already received $6 million over the past two years, earned $20 million for fairness opinions on Netflix’s bids, and is expected to collect another $30 million in advisory fees by December, plus $40 million when the transaction closes.

Meanwhile, the bidding war continues to intensify. Netflix has raised its offer for Warner Bros Discovery’s studio and streaming businesses to $83 billion, while Paramount Skydance’s $108 billion tender offer for the entire company is set to expire Wednesday, with investors anticipating a possible extension or higher bid.

As Warner Bros Discovery pushes forward with its corporate breakup and sale, it is spending hundreds of millions of dollars in fees, not including undisclosed costs paid to other advisers and law firms. While the final buyer remains uncertain, one outcome is already clear: Wall Street advisers are cashing in big.