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This man just lost $80 million on the Comcast-Time Warner Cable deal

Apr 24, 2015, 01:04 IST

Time Warner Cable CEO Rob Marcus was going to get $80 million in fees as soon as the company completed its $45.2 billion sale to Comcast.

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The $80 million was a "termination fee."

After Time Warner Cable sold, it would no longer need a CEO - so Marcus was going to have to exit the company (with a lot of money).

Today brought bad news for Marcus. The sale of Time Warner Cable just fell through.

Time Warner Cable will still need a CEO.

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So Marcus is going to have to keep his job.

There goes his $80 million.

Marcus is not the only one hurting: CFO Arthur Minson was also set to receive a severance package. His was worth $27 million.

Also: Time Warner Cable itself will not be getting a breakup fee from Comcast.

That means Time Warner Cable won't get paid a usually standard fee that acquisition targets get paid when their buying suitors go away.

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Generally, a deal's breakup fee is around 4%.

So, for the $45.2 billion transaction that is now swirling the drain, that means Time Warner Cable agreed to drop a $180 million breakup fee.

Some of the failed deal's other big losers are a number of Wall Street banks. Both enormous investment banks and tiny boutique firms stand to lose tens of millions.

The list includes: JP Morgan, Paul J. Taubman (who is now heading Blackstone's advisory business, set for an IPO later this year), Barclays, Morgan Stanley, Citigroup and boutiques Allen & Co. and Centerview Partners.

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