(The author is a Reuters Breakingviews columnist. The opinions expressed are their own. Refiles to correct typo in first paragraph.)
NEW YORK (Reuters Breakingviews) – Concise insights on global finance.
TOLLS IN BOTH DIRECTIONS. Post-pandemic corporate dealmaking is buoyant. Then there’s the single-handed boost from AT&T, which only in February set about partly offloading DirecTV, which it bought for $67 billion including debt in 2015. Now the telecommunications giant is spinning off the Time Warner assets it bought for $109 billion just three years ago in a deal with Discovery here.
Bankers and attorneys win whichever way the strategic wind blows. Goldman Sachs advised DirecTV on its sale but missed out on AT&T’s original Time Warner purchase. The Wall Street M&A powerhouse snagged both recent spinoff mandates for AT&T boss John Stankey. Boutique Allen & Co advised Time Warner on its sale to AT&T and Discovery on Monday’s deal. Perella Weinberg, which helped AT&T buy Time Warner, advised Discovery’s independent directors.
This being AT&T there’s always debt involved, and JPMorgan and Bank of America have served up finance and advice in various contexts. Among law firms, AT&T has kept the legal eagles at Sullivan & Cromwell busy on all four transactions. Analysts at Goldman are probably not the only ones burning out. (By Richard Beales)
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Earlier in Capital Calls:
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Nordic school-builder buyout is teachable moment
Boeing gives Ryanair another headache
Valuing GoAir’s IPO will be a turbulent exercise
Crown regains its swagger in Blackstone rebuff
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