Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
The massive market transformation this month that some on Wall Street called a "once in a decade opportunity" might have just been a one-off technical move because of taxes.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
CNBC did a deep dive through the most recent Wall Street research to find stocks that analysts say are underappreciated.Marketsread more
Shares of MasterCard are up 46% this year, and 1120% since 2011, getting a boost from the strong U.S. consumer.Investingread more
CNBC sat in on an "empathy training" at Amazon PillPack's Somerville offices, which is part of new hire orientation.Technologyread more
Trade with China is the 'big unknown' for the Federal Reserve as it decides how best to support the U.S. economy, says Council on Foreign Relations Director of International...Futures Nowread more
Lobbying experts said the visit is likely an attempt to be in lawmakers' ears as they consider legislation that would impact Facebook.Technologyread more
Yardeni Research's Edward Yardeni believes the U.S. economy is picking up steam.Trading Nationread more
Iran's audacious drone and cruise missile attack on Saudi Arabia's oil producing facilities has provided a critical test yet for the Trump administration's foreign policy. A...Politicsread more
The Arkansas-based mega retailer's buyout of the New Jersey-based website is the biggest U.S. e-commerce M&A deal ever.
The arrival of Allen & Co. at Wal-Mart's side in the Jet.com deal is notable for several reasons. Not only is the rising tide of boutique banks, sometimes led by former Wall Street banks' ex-rainmakers, continuing to pose a threat to bigger institutions. Allen & Co.'s working for Wal-Mart is also a sign that little banks are making big in-roads toward institutional firms' cherished business relationships with large-cap clients.
It's going to mean big bucks at Allen & Co., said Jeffrey Nassof, director at mergers and acquisitions consulting firm Freeman & Co. Altogether, the banks that work both sides of the Wal-Mart acquisition of Jet stand to make up to $45 million combined, he said.
Jet's advisers on the deal were not publicized, and a CNBC request for comment was not returned.
Wal-Mart, in prior tech acquisitions, did little by way of announcing which banks, if any, it worked with. Monday morning's announcement said that along with lead bank Allen & Co., JPMorgan Securities worked on the Jet deal. In contrast, Wal-Mart's 2015 acquisition of Chinese e-commerce firm Yihaodian made no mention of an adviser. It also made no such mention during its 2015 acquisition of Silicon Valley-based PunchTab for its WalmartLabs division. And when the mega retailer bought its way into the South African market in 2010 with the $4.6 billion deal for MassMart, another smaller bank (albeit one with a far longer track record), Rothschild, was on the deal.
Boutique investment banks saw their share of revenue from M&A rise year over year in the first half of 2016 — and if more deals like Wal-Mart's Jet buyout fly their way, it could make for an all-time high for small banks.
At a time when Wall Street banks are having a tough time meeting analysts' expectations for return on equity, the deals may mark one more challenge in a difficult year.