Lawyers and Bankers Win, DOJ and Shareholders Lose

Dealbook, a New York Times feature, lists the winners and losers in the recent ruling allowing the AT&T – Time Warner merger to proceed. High on the winners list were lawyers and bankers, slated to enjoy huge paydays for enabling acquisitions. Financial advisory fees for AT&T’s bankers alone were estimated to be between $90 million and $120 million. Fees for Time Warner’s bankers were estimated to be between $110 million and $140 million. The DOJ is counted among the big losers. The AT&T case was the most significant challenge that the department had made against a merger in a long time, but the judge utterly rejected its reasoning in a 172-page opinion. Disney shareholders lose, because the company will now have to either get into a bidding war with Comcast over Fox’s assets or walk away. That doesn’t make Comcast shareholders winners, however. They are likely caught in bidding war for Fox. Their shares fell 3 percent after the AT&T ruling came out.