Allen & Co Huge Deal
Just saw Allen & co is advising Activision in the deal with MSFT. Nearly $70 billion deal. Do they do a lot of deals of this size? This has to be a big year for them with a deal like that. Congrats to them
EDIT: I see they’ve advised Activision before. Still, it’s crazy to me how these small banks do it
It’s for the invite to Sun Valley and a vest
They get on a few big deals each year thanks to essentially hosting a summer camp where the big TMT CEOs get to talk about M&A opportunities with each other during wine tastings.
For all the threads on here about the new "interesting groups in gaming/entertainment". GS TMT/AllenCo take down the gorilla yet again.
Deal smells of the "top shareholders" wanting to oust the whole exec team from ATVI who never developed as the firm developed otherwise cashing out now makes zero sense.
They also advised discovery last year
Ian Smith is one of the best TMT merchant bankers out there. Heard he's one of their rainmakers if not their biggest.
Where do you find out this info so quickly (who the advisers were)?
Merger Market
You can just google the press release for a transaction and control F for "advisor"
Great, thanks!
https://investor.activision.com/news-releases/news-release-details/micr…
The press release
Who else was on it? GS/Allen, any buyside advisors
GS was buy-side, Allen on sell-side. If only single advisor it would be surprising but seems like it may have been.
Wonder who else providing financing on this. Would be huge advisory and of course financing fees coming out of this all cash deal.
https://en.m.wikipedia.org/wiki/Allen_%26_Company_Sun_Valley_Conference
Allen & Co is super connected in big tech and media.
How much are the advisor fees like for Allen / GS on this?
not sure if this is true so take it with a grain of salt, but I heard a good rule of thumb to calculate the advisory fee is that you take the square root of the deal in millions (so in this case √70,000) and then you divide that number by 5 and that gets you the advisory fee in millions. Using this formula for this deal would get you an advisory deal fee of around $53 million.
would really appreciate anyone's input/insight if this is actually a good rule of thumb formula to use or if there's another commonly used method
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