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Netflix to Acquire Warner Bros

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1741 points meetpateltech | 1 comments | | HN request time: 0.204s | source
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doublet00th ◴[] No.46160400[source]
Does anyone who's participated in M&A know how they come up with a breakup fee? I believe this one is $5 Billion (per Bloomberg), and Adobe <-> Figma was $1 Billion.

Interested to understand the modeling that goes into it.

replies(2): >>46160610 #>>46160690 #
1. brk ◴[] No.46160610[source]
Based on some experience, it's like a bond to appear in court. The number is mostly an arbitrary calculation designed to discourage you from not following through.