There have been rumours circulating that MGM Resorts is considering a takeover of Wynn Company. According to the New York Post, the resort’s execs are using back-channels to approach Wynn Resorts for the acquisition. Furthermore, it has been said that the current CEO, who replaced Steve Wynn, Matt Maddox is willing to sell the Wynn Resort if the price is right. There have not been any official talks between the two companies yet.
MGM owns the Luxor, Mirage, Bellagio, Mandalay Bay and New York casinos and can afford to buy the Wynn Resort. The Wynn Resort is estimated to cost $20 billion. However, in February, James Murren of MGM said that they would not make any bids to acquire Wynn.
Why A Wynn Resort Takeover?
Steve Wynn, who was the chairman and CEO of Wynn Resorts, resigned in February. He also sold all of his shares in the company. As a result of this decision, there seem to be companies that are interested in taking over the gaming operator.
The reason for Steve Wynn to resign and sell his shares is his sexual harassment case. There are many female staff current and previous that claim that they at some point of working at Wynn resort were harassed by the man.
Possible Challenges for MGM Resorts
Should MGM Resorts decide to buy Wynn, they will have to deal with the Macau situation. Most of the revenue in the company comes from there, and at the moment they are waiting for an extension of the operating license. The license expires in 2022. However, with the tense trade wars between Trump and the Chinese government, the licence may not be renewed.