scorecard
  1. Home
  2. finance
  3. This man just lost $80 million on the Comcast-Time Warner Cable deal

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

Jonathan Marino   

This man just lost $80 million on the Comcast-Time Warner Cable deal
Finance2 min read

Rob Marcus, Time Warner Cable

Larry Busacca / Getty Images

Rob Marcus just lost $80 million.

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.

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.

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.

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.

NOW WATCH: This hidden subplot of 'Game of Thrones' spells out the real trouble for the Lannisters

READ MORE ARTICLES ON


Advertisement

Advertisement