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In the biggest tech deal in years, Microsoft announced Monday
that it will acquiring social media platform LinkedIn.
Three Wall Street firms are going to make a bundle from the deal.
Morgan Stanley is the the exclusive advisor for Microsoft on the
$26.2 billion purchase, while two small firms – Qatalyst and
Allen & Co. – are advising LinkedIn, according to
a release from Microsoft.
In total, the three firms will bring in as much as $65 million in
fees from the deal, according to estimates from consultant
Freeman & Co. Here’s the full breakdown from Freeman:
- Buy-side: $10 to 20 million to Morgan Stanley
- Sell-side: $40 to 45 million to Qatalyst and
Allen & Co.
Microsoft announced that the firm will issue debt in order to
finance the deal.
Freeman & Co. estimates the company will issue around $15
billion in debt, a move that could generate another $40
to $60 million in fees.
Both Qatalyst and Allen & Co. have been on particular hot
streaks lately. Allen & Co., considered one of Wall Street’s
most secretive banks,
has advised on deals from Time Warner Cable’s
$80 billion merger with Charter Communications to
PayPal’s spinoff from eBay.
Qatalyst is known for its focus on the tech sector: it’s
former CEO Frank Quattrone worked on deals such as Amazon’s
and Cisco’s IPOs during the tech boom of the 1990s. Since
founded Qatalyst in 2008, it has advised deals such as
Google’s purchase of Motorola Mobility in 2011 with a small
team of only 40 employees.