New York’s Cravath, Swaine & Moore has a $35 million bet riding on the success of the AOL-Time Warner merger in a contingency-fee gamble that is unusually large and risky, The American Lawyer reports in its upcoming February issue.As lead outside counsel to longtime client Time Warner Inc. in the largest merger in history, Cravath agreed to a fee structure that borrows heavily from the all-or-nothing approach that companies typically use with their investment banks.

According to several sources familiar with the fee agreement, Cravath will receive one of the biggest transaction fees ever for a law firm — a staggering $35 million — if the merger closes. But if the deal falls apart, Cravath’s lawyers could go home empty-handed.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]