Weil Gotshal & Manges and Willkie Farr & Gallagher have ended talks about a possible merger, intensifying pressure on Weil executives as many of its top partners take jobs elsewhere.
Negotiations ended last night after the two sides signed a nondisclosure agreement to discuss a tie-up, two people familiar with the matter said. Willkie was the law firm Bloomberg Law reported Weil was in discussions with earlier this week.
By Thursday, at least some of Weil’s top partners had held discussions with their colleagues to drum up enthusiasm about a possible tie-up, according to a person familiar with those discussions. Ultimately, the merger negotiations were over.
This development occurred as more and more of Weil’s partners headed for the exit.
The co-managing partner of Weil’s corporate department, Lyuba Goltser, is considering joining Sidley Austin, according to a person familiar with the matter. Davis Polk & Wardwell plans to bring in litigator Drew Tulumello, another person said. And the Wall Street Journal reported that Paul Weiss was hiring securities litigation associate Caroline Zalka. Tulumello and Zalka are members of Weil’s management committee.
It’s unclear whether Weil has planned merger discussions with other companies, or whether its executives will seek to do so. But continued departures of high-profile associates risk sparking a so-called race for talent, in which associates begin to leave not because they can be more financially successful at another firm, but because they fear being left behind at a declining firm.
“Lateral moves to say ‘I can do better’ are very common,” said David McGowan, a law professor at the University of San Diego. “And the run to the bank metaphor happens when “I can do better” reaches a scale at which it transforms into “I don’t want to be left holding the bag.”
Some previous law firm mergers have occurred after talks with early suitors failed.
Shearman & Sterling broke off talks with Hogan Lovells in 2023 before partnering with Allen & Overy. Kaye Scholer and Arnold & Porter reportedly ended discussions in 2016, only for negotiations to resume and the companies to merge.
Spokespeople for Weil and Willkie did not respond to requests for comment.
Large law firms in the US and UK are actively exploring mergers amid a race for scale and a hot market for high-end partner firms. A combination of Weil with Willkie would have created a massive company with annual revenue of more than $4 billion, placing it among the five largest based in the United States.
Weil has been rocked by a series of partner departures in recent weeks, with more expected to be officially announced. Among the departures is Michael Aiello, the powerful head of the corporate department who announced in September his departure for Cravath, Swaine & Moore.
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