How Blackstone Survived the 2007 Real Estate Crash

The transcript discusses two major business deals: the $39 billion EOP real estate buyout and the Hilton leveraged buyout. The speaker explains how they managed to mitigate risks in the EOP deal by selling half of the assets immediately and later reducing their holdings further. This strategy allowed them to avoid significant losses when the real estate market collapsed. In the Hilton buyout, the speaker describes how they turned it into the most profitable buyout in history by integrating operations and modernizing the company, resulting in a $14 billion profit.

What was the initial strategy to manage risk after acquiring EOP real estate?

• Hold onto all assets and wait for market recovery

• Sell half of the assets immediately

• Invest more in the real estate market

• Merge with another real estate company

What was the outcome of selling more assets after the initial sale in the EOP deal?

• The company had to buy back the assets

• The company retained a quarter of the assets, leading to profits

• The company faced financial losses

• The market conditions worsened significantly

How did the company ensure it could survive any market downturn after the EOP deal?

• By investing in other industries

• By selling all acquired assets

• By pricing the remaining assets conservatively

• By acquiring more real estate

What was a key factor in the success of the Hilton acquisition?

• Maintaining multiple headquarters

• Integrating and modernizing the company

• Reducing the workforce significantly

• Focusing solely on luxury hotels

What was the financial result of the Hilton acquisition?

• A profit of $5 billion

• A profit of $14 billion

• A loss of $10 billion

• Breaking even