McKinsey Got Paid $150M+ for Doing This??

Key Concepts:

• McKenzie Consulting Fees
• Warner Brothers/Discovery Merger
• HBO Max Rebranding
• Consulting Scam/Inefficiency

McKenzie's Consulting Fees and Warner Brothers/Discovery Merger

In 2022, McKenzie Consulting was paid $55 million to advise Warner Brothers during its merger with Discovery. A significant portion of this fee, $37 million, was attributed to advising Warner Brothers on rebranding strategies for HBO's streaming service.

HBO Max Rebranding Debacle

McKenzie initially advised Warner Brothers to change HBO to HBO Max. Subsequently, they advised a further change from HBO Max to simply "Max," and then, in 2025, they advised reverting back to HBO Max. This series of rebranding decisions, driven by McKenzie's advice, cost Warner Brothers an additional $63 million in consulting fees.

Analysis of the Situation

The video highlights the perceived inefficiency and potential "scam" nature of McKenzie's consulting services. The fact that McKenzie was paid significant sums to essentially reverse their own advice raises questions about the value and effectiveness of their consulting.

Reactions and Commentary

The video references reactions from social media personalities. Greg tweeted, "Don't be the problem. Be the solution that creates the problem," implying that McKenzie created problems for Warner Brothers in order to then offer solutions (for a fee). Tai Lopez, known for his commentary on business and finance, acknowledged the situation as "a good gig," suggesting that McKenzie profited handsomely from the situation.

Conclusion

The video presents a critical view of McKenzie's consulting work for Warner Brothers/Discovery, suggesting that the firm profited from providing advice that ultimately led to costly and seemingly unnecessary rebranding efforts. The situation is portrayed as an example of potentially wasteful spending on consulting services and raises questions about the accountability and value provided by such firms.