Legal AI startup Crosby bids for Weil Gotshal's data and brand as the 95-year-old law firm winds down
What's going on? Crosby, a two-year-old legal AI startup, submitted a letter of intent on Thursday 29 October to buy some of the assets of Weil, Gotshal & Manges, the 95-year-old New York law firm that is winding down, The Information reports, citing a person familiar with the bid. The assets named are Weil's internal data, its trademark and its brand. Crosby also hopes to hire some of Weil's roughly 1,200 lawyers. Bid terms, and whether there are other bidders, have not been reported.
The collapse: On 28 October Weil said its management committee had recommended "an orderly wind-down" to the partnership, with partners expected to vote in the coming days. The firm had more than $2 billion in revenue last year and lawyers in 16 offices across the US, Europe and Asia, Reuters reports. More than 30 partners left this year, including corporate chair Michael Aiello, who moved to Cravath with five partners in September; merger talks with Willkie Farr & Gallagher broke down and incoming leader Ramona Nee stepped back. Weil plans to wind down out of court, with AlixPartners and Davis Polk advising, and associates and staff were told they will be paid for 90 days. Axios notes Weil ranked No. 9 among global deal advisers in 2022 per LSEG but had dropped outside the top 25 by last year.
About Crosby: Co-founded by CEO Ryan Daniels, a lawyer, and CTO John Sarihan, a former engineering manager at Ramp, Crosby runs a law firm where more than 50 attorneys use AI agents (built on OpenAI, Anthropic and Google models) to speed up contract review and negotiation. It has raised over $80 million from Lux Capital, Index Ventures, Sequoia and Bain Capital Ventures, most recently at a $400 million valuation, according to The Information.
Why it's being talked about: An AI-native firm bidding for the name and archive of one of Wall Street's best-known law firms is a vivid sign of how AI companies now value data from failed businesses. A big firm's non-client data, such as M&A agreement templates and contracts at different negotiation stages, could be used to tune legal AI systems; Google, Mercor and Micro1 recently bid for Spirit Airlines' internal data and code. How Crosby would use Weil's data is not known, and the bid is unconfirmed by either company.
Sources: The Information / CNBC: Weil plans wind down / Reuters explainer / Axios
