Blackstone Announces Tax-Free Advisory Business Spinoff

The video discusses Blackstone's plan to spin off its advisory business into an independent company, with Steve Schwarzman as the largest shareholder. Paul Taubman will lead the new firm. Barry Ritholtz provides insights on the strategic move, highlighting compliance and revenue considerations. The video also addresses conflicts of interest within Blackstone and compares the new entity's potential market value to similar firms.

What is Blackstone planning to do with its advisory business?

• Close it down

• Merge it with another division

• Spin it off into an independent company

• Sell it to a competitor

Who is set to become the CEO of the new advisory business?

• Michael Dell

• Steve Schwarzman

• Barry Ritholtz

• Paul Taubman

What is one reason Barry Ritholtz gives for the spin-off making sense?

• It will allow Blackstone to enter new markets

• It will increase the number of employees

• It will help manage compliance challenges

• It will reduce Blackstone's overall revenue

What kind of conflicts does Blackstone face that are mentioned in the video?

• Conflicts with government regulations

• Conflicts with its shareholders

• Conflicts of interest in advising and investing

• Conflicts with its competitors

What is the potential market value comparison made for the new advisory business?

• It is expected to be higher than Blackstone's current value

• It might be similar to Molson Company's value

• It will surpass Yahoo's market value

• It will be less than $1 billion