Goldman, JPMorgan could rake in $133M on fees if Musk-Twitter deal closes

Goldman Sachs and JPMorgan are anticipated to haul in a mixed $133 million in funding banking fees for advising Twitter on the company’s sale to Elon Musk.

But the majority of that money will solely come if the deal closes — a probability in question as Musk threatens he received’t observe by with the $44 billion acquisition.

Goldman Sachs nabbed $15 million upfront and can haul in $80 million if the deal closes, based on a securities filing Tuesday. JPMorgan acquired $5 million for preliminary work advising the board however will solely obtain $53 million if the deal closes.

And the understanding of the $44 billion Elon Musk Twitter deal is in question after Musk tweeted he received’t shut the Twitter deal except the company can show to him that lower than 5% of customers are bots.

In a tweet Tuesday, Musk mentioned his supply “was based on Twitter’s SEC filings being accurate” and he wants proof to maneuver ahead.

Jamie Dimon, CEO of JPMorgan Chase
JPMorgan acquired $5M for preliminary work, however will solely obtain $53 million if the deal closes.

But Musk’s authorized footing for backing out of the deal is shaky, filings recommend. According to securities filings, Twitter can drive Musk to consummate the deal even if he waffles.

And the anticipated payout comes as banks are seeing an in any other case large fall-off in funding banking fees because the financial system slows and deal-making exercise wanes.

Goldman, which generally generates a 3rd of its income from its funding financial institution by profitable fees from advising on offers, introduced in $2.41 billion in fees in the primary quarter of 2022 — 36% decrease than the primary quarter from the year earlier than. Overall earnings had been down 42% in the primary quarter.

david solomon
David Solomon — who helms Goldman Sachs — has seen a drop-off in banking income this year.
AFP by way of Getty Images

At JPMorgan, revenue was additionally down 42% in the primary quarter. And funding banking fees, which have buoyed income over the previous couple of years, had been down 31% — with total funding banking revenue slumping 26%

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