Time Warner Cable CEO Rob Marcus was going to get $80 million in fees as soon as the company completed its $45.2 billion sale to Comcast.
The $80 million was a "termination fee."
After Time Warner Cable sold, it would no longer need a CEO — so Marcus was going to have to exit the company (with a lot of money).
Today brought bad news for Marcus. The sale of Time Warner Cable just fell through.
Time Warner Cable will still need a CEO.
So Marcus is going to have to keep his job.
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There goes his $80 million.
Marcus is not the only one hurting: CFO Arthur Minson was also set to receive a severance package. His was worth $27 million.
Also: Time Warner Cable itself will not be getting a breakup fee from Comcast.
That means Time Warner Cable won't get paid a usually standard fee that acquisition targets get paid when their buying suitors go away.
Generally, a deal's breakup fee is around 4%. In this case it would have been a $1.8 billion breakup fee.
Some of the failed deal's other big losers are a number of Wall Street banks. Both enormous investment banks and tiny boutique firms stand to lose tens of millions.
The list includes: JP Morgan, Paul J. Taubman (who is now heading Blackstone's advisory business, set for an IPO later this year), Barclays, Morgan Stanley, Citigroup and boutiques Allen & Co. and Centerview Partners.
