Buying 2 Rivals to Create a Dominant Leader

Yeah, it's pretty wild. I mean, look, I was a. I was a customer Get Out Pass.

So we had a pass. For my family, it's a phenomenal value, and our family used it all the time. They loved it. We loved it. But I went to this ETA conference at byu. They, they have an annual ETA conference.

And he had mentioned that in the panel. I was like, oh, that's interesting. But. But I didn't, like, he wasn't there talking about Get Out Pass.

Well, we went to a Utah Jazz game later that night. I invited some of the people to go to this event, and a friend of mine, the guy who actually organized the event, was like, hey, Kyle, you should meet tc. TC is the founder of Get Out Pass, and Kyle worked for Gym Pass.

Like, they sound similar. You guys should meet. So we start talking and he's just peppering me with questions about how do we.

Because he didn't realize how big gympass was. You know, I had told him, like, yeah, our last valuation was like two and a half billion dollars. He's like, wait, what?

I had no idea. I was like, yeah. I mean, it's. It's grown really fast. And so he started asking me all these questions about how we ran it, how we operated. You know, what do we do to acquire venues, how do we retain the venues, what we do for member acquisition, like all these things.

I just thought it was helping an entrepreneur who's trying to figure out how to grow his business. And we, we talked there until they kicked us out of the, out of the stadium. And as we're walking out, he said, look, you know, I know you're here looking to buy a business.

We're not necessarily for sale, but there's three owners. We're all looking to go different directions and I'm interested in finding somebody, finding somebody who could take us to the next level and, and that would acquire this business and I'd be willing to roll equity if I found the right person. He's like, I think I might've just found the right person.

And I was like, holy moly, you're for sale. And anyway, so that's, that's how it started. So even though it wasn't necessarily on the market, they had, you know, been exploring, you know, a little bit, dipping their toes in the water.

They had a few offers actually. And so that's, that's how it all began. Well, the, just to make clear to the audience what a coincidence how like on how many levels this is a coincidence, they're not that many businesses out there that have this kind of pass model, the gym pass model to get out pass model.