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Netflix to Acquire Warner Bros

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1741 points meetpateltech | 1 comments | 05 Dec 25 12:21 UTC | HN request time: 0.31s | source
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doublet00th ◴[05 Dec 25 12:30 UTC] 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 #
nutjob2 ◴[05 Dec 25 12:59 UTC] No.46160690[source]▶
Like everything else it's just a negotiated figure. Arguments to and fro would include the likelihood of breakup (such as regulatory risk, unforeseen events), how disruptive the whole process is and also simply how desperate the buyer or seller is.

There's no modeling, it's a punishment or incentive. The intention is to inflict financial pain.

replies(1): >>46161013 #
1. bombcar ◴[05 Dec 25 13:30 UTC] No.46161013[source]▶
There’s a rough baseline of “cost to be acquired” and you start there, and do some doubling or other increases.

Basically, being acquired is a pain in the assets and you want it to be worth your while to pursue it, even if it falls through, otherwise the board is looking at getting replaced.