reno
reno
Joined: Jan 20, 2010
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June 5th, 2015 at 9:10:07 AM permalink
On Thursday, shares of Wynn stock were up 7 percent, as a rumor floated around Wall Street: Wynn Resorts might merge with MGM Resorts.

Who knows if this gossip is true. But for the sake of argument, is it really in Wynn's interest to merge with MGM? I can see the upside for MGM, but I'm not sure Wynn would benefit much, beyond domination of the Strip. On the other hand, with falling revenue in Macau, maybe a greater investment in Las Vegas is a smart move for Wynn.

At least he'd finally regain ownership of his masterpiece: Bellagio.
Ibeatyouraces
Ibeatyouraces
Joined: Jan 12, 2010
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June 5th, 2015 at 9:33:16 AM permalink
Quote: reno

On Thursday, shares of Wynn stock were up 7 percent, as a rumor floated around Wall Street: Wynn Resorts might merge with MGM Resorts.

Who knows if this gossip is true. But for the sake of argument, is it really in Wynn's interest to merge with MGM? I can see the upside for MGM, but I'm not sure Wynn would benefit much, beyond domination of the Strip. On the other hand, with falling revenue in Macau, maybe a greater investment in Las Vegas is a smart move for Wynn.

At least he'd finally regain ownership of his masterpiece: Bellagio.


Seems like everything he builds MGM gets anyway. Wouldn't surprise me.
"And that's the bottom lineeeee, cuz Stone Cold said so!"
MrV
MrV
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June 5th, 2015 at 10:07:57 AM permalink
Steve Wynn is getting on in years, his eyesight is failing, and the bloom is off the Macao rose.

Sounds like a good time for him to retire, just cash in his chips, and buy some new artwork.

On the other hand, his whole life has been gambling related, he is very egotistical and highly competent at casino development: can such a player ever REALLY get out of the game?
"What, me worry?"
DeMango
DeMango
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June 5th, 2015 at 1:23:16 PM permalink
Well if MGM ever took over The Wynn, it would be a heckuva lot better than if CZR took over!
reno
reno
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June 5th, 2015 at 2:12:45 PM permalink
Quote: DeMango

Well if MGM ever took over The Wynn, it would be a heckuva lot better than if CZR took over!



If MGM attempted to merge with CZR, I would hope the government would step in & block the merger on anti-trust grounds. Combined, those companies "own" 20 of the 31 Strip casinos. (Own is in quotation marks, because Caesars shuffles ownership of their properties between multiple subsidiaries & shell companies to hide debt.)
Ayecarumba
Ayecarumba
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June 5th, 2015 at 2:19:43 PM permalink
Quote: MrV

... can such a player ever REALLY get out of the game?

No. Mr. Wynn will be all in until the end. He had the means to head off into the sunset after the Bellagio sale, but couldn't stay out of the game. He needs to keep building bigger and better.

Even if there is a merger, doesn't MGM owe a big stake to Pansy Ho and her entourage? I am not sure how that would sit with Mr. Wynn.
America is all about speed. Hot, nasty, bad-ass speed. - Eleanor Roosevelt, 1936
Canyonero
Canyonero
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June 5th, 2015 at 2:24:24 PM permalink
The genesis of a Wall Street rumor:

Cokehead A: A lot of buying pressure on WYNN today. What gives?
Cokehead B: Dunno. Maybe merging with MGM or sumthing...
Cokehead C: Hey everybody, have you heard? WYNN might merge with MGM!

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