Friday, June 05, 2015

MGM Wynn Merger Rumors

An interesting tidbit came out when Jim Cramer mentioned on CNBC that there is speculation of a possible Wynn Resorts merger with MGM Resorts International.

This scenario would be very similar to 15 years ago when MGM boss Jim Murren was instrumental in a takeover of Steve Wynn's Mirage Resorts.

Merger talk was also in the air at the Las Vegas Sands stockholder meeting today. A shareholder asked if a LVS takeover of Wynn Resorts was a possibility due to Wynn's decreased share price. Sheldon Adelson answered the question by saying (paraphrasing) without Steve Wynn running the show, Wynn Resorts would be worth a lot less. He also mentioned that he and Wynn are good friends and a takeover wouldn't be a comfortable situation for the two.

Mergers, acquisitions and buildings changing hands are common occurrences in the casino business. It will be interesting to see what happens to these companies over the next few months, and years. Throw a possible Caesars bankruptcy into the mix and things could get crazy on the Strip.