If Elon Musk can buy twitter for $44 billion, Goldman Sachs and JPMorgan Chase, which advise twitter, will receive a total of $133 million in consulting fees. According to the documents of the securities and Exchange Commission, twitter agreed to pay $80 million to Goldman Sachs, most of which will be paid after the transaction is completed.
When the deal was announced, Goldman had received $15 million. JPMorgan Chase is expected to reap $53 million, of which $5 million was paid after the bank submitted its acquisition opinion to the twitter board on April 25. The remaining consulting fees will depend on the completion of the transaction.
However, most of these costs may be at risk. Musk announced on twitter on Tuesday that he would not advance the acquisition unless twitter could prove that robots accounted for less than 5% of its users, which brought uncertainty to the transaction. Twitter said in a statement that it "promises to complete the transaction as soon as possible at the agreed price and terms".
If the deal can be successfully completed, it will be a windfall for investment banks trying to cope with the slowdown. In the first quarter of this year, boosted by the transactions announced in 2021, the M & a consulting revenue of the five major investment banks increased year-on-year.