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Qatalyst founder Frank Quattrone(AP Photo/Paul Sakuma)

Last night's stunning news that Cisco would buy AppDynamics for $3.7 billion wasn't just bad news for the tech IPO market, but it was also bad news for tech IPO bankers.

None of the eight underwriters of the now-scuttled AppDynamics IPO ledthe sale, including bulge-backer leads Morgan Stanley, Goldman Sachs and J.P. Morgan (although at least MS and GS are claiming some credit, in releases sent out today). Instead, it was led by advisory firm Qatalyst Partners ― which Techcrunch reports hadn't even been retained to run a dual-track process. Instead, Qatalyst saw a hot IPO prospect, rang up prospective buyers and found a taker.

Banker blues: What this means the underwriters won't be getting paid for the IPO ― namely since there is no IPO. One of those bankers tells me he expects to receive at least some of the merger advisory fee "given how far we went into the IPO" (it was expected to rice tonight), although nothing has been formally communicated.

But that's really just a short-term issue, and relatively small dollars. The larger frustration for big banks is that San Francisco-based Qatalyst continues to muck up their M&A advisory business. The whole reason so many Wall Street firms now underwrite smallish tech IPOs is because it's viewed as a foot in the door with companies that would otherwise go with Qatalyst for their M&A business (which is where the real fees are generated). Now even that strategy is arguably under assault, since IPO underwriters can't run dual-track processes without their issuer's consent.

Bottom line: Cisco's $3.7 billion purchase of AppDynamics is a huge win for Qatalyst and AppDynamics shareholders. It's a big loss for Wall Street.

Go deeper

Scoop: Gina Haspel threatened to resign over plan to install Kash Patel as CIA deputy

CIA Director Gina Haspel. Photo: Win McNamee/Getty Images

CIA Director Gina Haspel threatened to resign in early December after President Trump cooked up a hasty plan to install loyalist Kash Patel, a former aide to Rep. Devin Nunes (R-Calif.), as her deputy, according to three senior administration officials with direct knowledge of the matter.

Why it matters: The revelation stunned national security officials and almost blew up the leadership of the world's most powerful spy agency. Only a series of coincidences — and last minute interventions from Vice President Mike Pence and White House counsel Pat Cipollone — stopped it.

Updated 4 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus deaths reach 4,000 per day as hospitals remain in crisis mode — CDC warns highly transmissible coronavirus variant could become dominant in U.S. in March.
  2. Politics: Biden says, "We will manage the hell out of" vaccine distribution — Biden taps ex-FDA chief to lead Operation Warp Speed amid rollout of COVID plan — Widow of GOP congressman-elect who died of COVID-19 will run to fill his seat.
  3. Vaccine: Battling Black mistrust of the vaccines"Pharmacy deserts" could become vaccine deserts — Instacart to give $25 to shoppers who get vaccine.
  4. Economy: Unemployment filings explode againFed chair: No interest rate hike coming any time soon —  Inflation rose more than expected in December.
  5. World: WHO team arrives in China to investigate pandemic origins.

John Weaver, Lincoln Project co-founder, acknowledges “inappropriate” messages

John Weaver aboard John McCain's campaign plane in February 2000. Photo: Robert Schmidt/AFP via Getty Images)

John Weaver, a veteran Republican operative who co-founded the Lincoln Project, declared in a statement to Axios on Friday that he sent “inappropriate,” sexually charged messages to multiple men.

  • “To the men I made uncomfortable through my messages that I viewed as consensual mutual conversations at the time: I am truly sorry. They were inappropriate and it was because of my failings that this discomfort was brought on you,” Weaver said.
  • “The truth is that I'm gay,” he added. “And that I have a wife and two kids who I love. My inability to reconcile those two truths has led to this agonizing place.”