Update: Marriott has outbid Anbang for control of Starwood once again. Additionally Starwood has agreed to pay Marriott $468MM as a breakup fee if they accept a bid from another company in this ongoing bidding war.
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Originally posted on 3/18:
In a fantastic development for mileage junkies, Starwood has reversed course and has agreed to be sold to China’s Anbang consortium.
Marriott runs a far less generous loyalty program than Starwood and while they have promised to elevate their combined program to Starwood’s standards, there’s obviously reason for concern.
The Starwood AMEX and Chase Marriott cards are both running unprecedented signup bonuses as they look to expand their book of business before the merger, when one of the cards would likely go away. Frankly I’m surprised that AMEX didn’t make their own play to buy out Starwood just to stop the bleeding after losing Costco and JetBlue last year.
Of course this is all a play to get Marriott to cough up more cash for SPG. I’m rooting that they’ll take the $400MM breakup fee payment and walk away, though that’s probably unlikely at this point in the bidding war.
HT: damaxer91
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29 Comments On "Starwood Agrees To Be Sold To The Chinese, Marriott Has 5 Days To Respond"
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The Chinese are taking over! Lol
@joe:
First time I’ve ever been rooting for a Chinese takeover!
Though I’ve always had a thing for General Tso 😉
Who would have to pay who 400mil?
@Me:
SPG would have to pay Marriott $400MM if they don’t merge.
Talk about a pricey no-show charge 😉
Of course ultimately that just means the Chinese are at a $400MM disadvantage when it comes to their bidding price.
General tso or any fast food chinese restaurants arent real chinese foods. Just fyi.
@Mike:
I’m well aware. More Jewish than Chinese 😀
Why is this such a fantastic development if you think that marriott will respond by creating a bidding war? Do you think they will lose the war?
@AROCKS1:
The Chinese have deep pockets. I’m hoping they eventually prevail.
Hopefully Trump doesn’t try to spin this as another example of “loosing to China” 😜
Dan, Do you really think there is any chance Amex would bid on Starwood? They can’t even manage banking well how are they going to manage a hotel company?
#ChinaOverMarriot!
@Dan’s the Man:
No.
But AMEX will be in a world of pain if they lose SPG.
I think the Chinese like the idea of vertical integration and want to keep the whole profit chain to themselves. If the Chinese take over Starwood, do they have their own big credit card issuers to replace AMEX?
@Dan Why do you think the Chinese will keep the current programs?
“The Chinese are buying…”
How would you feel if someone wrote: “TheJews are buying…”?
President Trump will bring them back.
@David Jeremias: It would be Israeli’s if you’re talking about the country and their is nothing wrong with that.
The American’s do this the European’s do that etc.
How do we know that the Chinese will not devaluation spg if they take over? I’m sure they will be reviewing everything to try to maximize their returns..
But then again they manage the lounges pretty nicely!
Maybe they should drop cards and just focus on hospitality! Baboom!
“Sources told CNBC that Marriott will in fact make a counter-bid.”
If you think a Chinese company buying out Starwood helps your rewards redemption vs. Marriott I have a bridge to sell you.
@Mike:
We know Marriott runs a bad loyalty program. Maybe they can improve, but I wouldn’t take that bet.
I’d rather bet on the Chinese consortium leaving things as is rather than risk ruining their investment.
@Dan Any chance Anabang will add the Waldorf Astoria which they own to SPG?
Time to convert my Starwood Amex. No way in giving my business to the Chinese.
will this affect any new point hotels in israel?
If i have a lot of SPG points right now, should i be concern that i will loos them if they are not used before the merge ?
Just shows how starwood was willing to sell for less then it’s worth,what a shame for share holder’s.
Still have hope Dan?
The Chinese might have deep pockets, but I don’t trust their sewing skills.
Tough choice: Mormons v PRC.