In CBS-Viacom Merger, Boutique Investment Banks Will Share Up to $70 Million in Fees
CBS and Viacom primarily relied on boutique investment banks to help put together their long-awaited $11.7 billion merger.
Centerview Partners Holdings and Lazard are advising CBS. Viacom’s bankers are LionTree Advisors and Morgan Stanley while National Amusements—the controlling shareholder of both companies—is being advised by Evercore, according to the deal announcement.
CBS’ advisers could share a pot of $25 million to $30 million in fees, according to estimates from consulting firm Freeman & Co. The advisers for Viacom could roughly split between $30 million to $40 million.
Liontree and Morgan Stanley are “both first class institutions,” Viacom Chief Executive Officer Robert Bakish said in an interview. “I know the principals on the deal extremely well and they did a phenomenal job.”
Boutique investment banks have fewer business lines and primarily sell advice to clients. While full-service investment banks such as Morgan Stanley, JPMorgan Chase & Co., and Goldman Sachs Group sell advice too, they are also more diversified. They help companies sell stocks and bonds, among other services.
More must-read stories from Fortune:
—Does the stock market have a say in the presidential election?
—The bond market has a message for the Fed: You’re not in charge anymore
—Wall Street banks see increasing odds of recession after trade war escalation
—Debit cards for kids? Here’s what you need to know about the newest offerings
—Amid trade tumult, Goldman Sachs now sees two more interest rate cuts this year
Don’t miss the daily Term Sheet, Fortune‘s newsletter on deals and dealmakers.