Why are Bill Gates and a Saudi shiek buying up Four Seasons Hotels?

Question

and doing it at a discount?

Answer 1

To make it private
Right not (as of november anyway) it was a publicly traded company, where dividends were paid to all stockholders all over the place.

The gentlemen think they can do better, but want to own the company outright and not have to follow all the rules the FCC and SEC impose upon Public Companies.

Money is always the motivation.

Answer 2

Why Rent When You Can Buy? Bill Gates And Arab Prince Buy Four Seasons For $3.8 Billion

The Four Seasons chain, which includes 74 luxury hotels including spots in Beverly Hills and Paris, has agreed to a $3.8 billion offer by Bill Gates and Saudi Arabian Prince Alwaleed Bin Talal.

The deal will take the company private, and control will remain with the CEO, Isadore Sharp, who will receive $289 million and equity in the ownership.

The deal still needs final approval by the shareholders, however the purchase price of $82 per share will likely pass muster.

The deal may seem like its bringing two strange bedfellows together, however Microsoft and Saudi Arabia have long been looking to further their business relationships.

The Prince will use his Kingdom Hotels International to acquire the stake, while the world's richest man, Gates will use his firm Cascade Investment, to pick up his share of the bill.


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Answer 3

Hotels are hot investments now.

Answer 4

They have done other ventures as well. Both have good business minds.