As Netflix and Paramount Skydance battle for control of the “Harry Potter” and “Game of Thrones” franchises, the investment banks advising the WBD board have insulated themselves from the outcome.
JPMorgan’s Total Payday: $282 Million
While the $90 million advisory fee is significant, JPMorgan’s total compensation for the deal is projected to reach approximately $282 million. This is due to its dual role as both an M&A advisor and a primary financier for the company’s complex pre-sale restructuring.
- Bridge Loan Fees ($189 Million): JPMorgan arranged a massive $17.5 billion bridge loan—one of the largest non-investment-grade bridge loans in Wall Street history—to help WBD spin off its linear networks (CNN, TNT, TBS) into a separate entity called Discovery Global.
- M&A Advisory ($90 Million): A guaranteed fee for managing the bidding process and negotiating terms with Netflix and Paramount.
- Fairness Opinions ($3 Million): Fees paid for providing formal assessments that the offers were financially fair to WBD shareholders.
The Bidding Landscape (January 2026)
The payday comes as the acquisition contest reaches a fever pitch. On January 20, Netflix simplified its bid to an all-cash offer, aiming to close the deal by April 2026.
| Feature | Netflix Offer | Paramount Skydance Offer |
| Total Value | $82.7 Billion | $108.4 Billion |
| Structure | All-Cash ($27.75/share) | Cash & Stock (Hostile Tender) |
| Assets Target | Streaming & Studios Only | Entire Company (incl. Networks) |
| Board Status | Recommended | Rejected / Hostile |
Restructuring: The “Two-Way” Split
The banks’ fees are partly driven by the sheer complexity of the “WBD Split.” To satisfy Netflix’s desire for a “clean” studio business, JPMorgan is overseeing the separation of WBD into two publicly traded companies:
- Warner Bros. (New): The film/TV studios and Max streaming service, to be acquired by Netflix.
- Discovery Global: The legacy cable channels and sports networks, which will remain independent.
Conclusion: A Return to Big M&A
The $180 million fee pool marks a resurgence for Wall Street’s dealmakers. After a lackluster 2024 and 2025, the Netflix-WBD deal—valued at over $80 billion—represents the type of “mega-merger” that defines an era.For JPMorgan and Allen & Co., the transaction is already a success, proving that in the world of high-finance, the house always wins
