If Blackstone owns Seaworld, why doesn't Blackstone underwrite the Seaworld IPO?
JP Morgan and Goldman Sachs are the lead underwriters on the deal. Is Blackstone not allowed to lead the IPO because of its private equity interest?
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http://en.wikipedia.org/wiki/Tilikum_%28orca%29
Imagine being the PM on this investment and getting the phone call that your rogue killer whale just ghosted another trainer. Like dealing with the Charles Manson of aquatic creatures. That whale has killed 3 people and continues to perform. Gotta love PE haha.
I just died laughing at this... "your rogue killer whale just ghosted another trainer" ... it shouldn't be funny but it is...
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Don't worry bro, OSHA fined them $75,000 for the violation. That probably fixed everything.
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Also, this... not sure if epic wiki troll, or true:
On December 7, 2010, TMZ reported that PETA and Mötley Crüe member Tommy Lee sent a letter to Terry Prather, SeaWorld's president, referencing SeaWorld's announcement regarding limiting human contact with Tilikum. In the letter, Lee refers to Tilikum as SeaWorld's "Chief Sperm Bank" and asserts that "we know from SeaWorld's own director of safety (as well as videos on the web)" that SeaWorld obtains sperm from Tilikim by having a person "get into the pool and masturbate him with a cow's vagina filled with hot water" (OMGWTFBBQLOL?!) which constitutes continued human contact. The letter implores SeaWorld to release Tilikum from his tank stating "I hope it doesn't take another tragic death for SeaWorld to realize it shouldn't frustrate these smart animals by keeping them [confined] in tanks"23 On December 8, 2010, the SeaWorld VP of Communications responded to Mr. Lee's letter via E! News, stating that PETA's facts were not only inaccurate, but that SeaWorld trainers "do not now, nor have they ever entered the water with Tilikum for this purpose."24
Because it is a big-ass conflict of interest.
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You don't put all of your nuts in one basket.
HAHAHAHA
xoxo
Yeah dude. Blackstone probably has a model detailing a breakdown between a trainers life and Tilikum's revenue. That fucker can just kill people endlessly as long as the asses are in the seat.
I loved the one where the whale swam in circles with the dead trainer on its back, showing it off. Hannibal Lecter style. They should start tattooing tear drops on Tilikums eye for every person it kills.
I'm crying... It's too much bahaha
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Part of it's probably also to reward other banks for bringing in ideas, deals, relationships, etc. There's a lot of quid pro quo in this business.
Blackstone was the largest co-manager on the deal, so they did underwrite this.
1) Blackstone doesn't have a whole task force of equity sales like BBs do to sell as much as a lead left
1a) Blackstone doesn't have the relationships with institutional public market mutual/hedge funds to sell as much as a lead left 2) Blackstone is trying to get OUT of their investment and taking on too much underwriting risk means they may be stuck with a bunch of shares that they don't want and were banking on selling to return money to LPs 2a) Blackstone doesn't have the resources/skillset to stabilize the share price after the offering, investment banks do 3) Blackstone would absolutely burn bridges with every single investment bank by taking lead left - they need these investment banking relationships in order to pursue buyouts effectively. These relationships allow them to get great info about what companies may be on the block, who may be interested in their portfolio companies when its time to sell, and play the incredibly important role of raising billions in debt financing/bridge loans to execute the deal. They can't afford to lose these relationships.
Blackstone is simply reducing it's IPO cost by co-managing. They're not an ECM shop, they're a PE shop. Taking lead roles on underwriting isn't their core competency and they don't want it to be.
Source: asked a BB ECM MD a similar question before about a sponsor-backed company IPO
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