|Bid||0.00 x 4000|
|Ask||0.00 x 1100|
|Day's Range||27.42 - 28.06|
|52 Week Range||21.62 - 31.68|
|Beta (3Y Monthly)||1.22|
|PE Ratio (TTM)||82.70|
|Earnings Date||Oct 30, 2019|
|Forward Dividend & Yield||0.52 (1.87%)|
|1y Target Est||33.48|
MGM is making a sale. The global casino giant is selling two of its properties on the Las Vegas strip: the Bellagio and Circus Circus. The Bellagio will be put into a joint venture controlled by Blackstone Group, that MGM will hold a 5 percent stake in. The company says the sale will free up cash and allow more flexibility.
MGM Resorts International said that it had agreed to sell two properties for $4.3 billion on Tuesday. With the company selling for relatively high valuations and likely to use the proceeds to cuts it balance sheet and return capital to shareholders, the deals were “the big bang that should have been, but wasn’t... at least in terms of share price performance,” JPMorgan Chase’s Joseph Greff said in a note to clients Wednesday. The two deals—the Bellagio to a Blackstone fund and Circus Circus to Phil Ruffin, the owner of Treasure Island—“are first steps in MGM’s push toward low balance sheet leverage and increasing flexibility for capital return (eventually),” Greff wrote.
Acquisitions have helped GVC become one of the largest sports betting and gaming companies. Its brand diversity, strong online growth, and position in the U.S. market mean the stock could continue to rise.
The sale will free up cash, offering MGM flexibility to operate in new and different ways, said MGM Resorts Chairman and CEO Jim Murren.
MGM Resorts International expects to raise a net $4.3 billion of cash from a pair of real estate deals announced late Tuesday. Don’t expect the deal-making to end.
MGM Resorts has divested real estate assets worth $5bn, striking two deals that will see iconic Las Vegas properties pass to the Blackstone Group and to Donald Trump’s business partner in the gambling capital. , who joined with Mr Trump to develop the Trump International, a non-casino hotel and condominium in Las Vegas.
Investing.com – Wall Street was slightly lower on Wednesday as upbeat earnings from Bank of America (NYSE:BAC) were offset by concerns that a U.S. bill favoring Hong Kong protests could stoke fresh trade war retaliation from China.
The charts of the casino and entertainment giant look ready to support a good rally, with more aggressive buying of its shares in recent months.
U.S. stock futures decline as Wall Street awaits another round of third-quarter earnings reports and global stocks trade mixed as investors monitored Brexit developments; Netflix, IBM and Bank of America report earnings Wednesday; McKesson, AmerisourceBergen and Cardinal Health reportedly are in talks to pay $18 billion to settle thousands of opioid-related lawsuits.
(Bloomberg) -- MGM Resorts International, pressured by investors to unload its remaining company-owned casinos, agreed to sell the Bellagio resort in Las Vegas to Blackstone Group for $4.25 billion and will continue to operate the property under a lease arrangement.The Las Vegas-based casino company also agreed to sell the Circus Circus property on the Strip, along with 47 adjoining acres, to real estate mogul Phil Ruffin for $825 million, according to a statement Tuesday.With the sales, MGM Resorts moves a step closer to becoming a landless casino company, marking a new era for the largest operator of casinos on the Las Vegas Strip. When all of its deals close, the company will have just two wholly owned properties, including the flagship MGM Grand, remaining under its ownership. The company is keeping a 5% stake in the Blackstone-led venture that’s buying Bellagio.“The casino industry is evolving and we figured the best use of our intellectual capital was to focus on sports, live entertainment and reduce leverage,” Jim Murren, MGM’s chairman and chief executive officer, said in an interview. “It’s very historic for a variety of reasons.”MGM has been restructuring under pressure from activist investors. The company has cut and reorganized management, and previously sold all but four of its wholly owned casinos to MGM Growth Properties Inc., a real estate investment trust it created three years ago. The REIT has an option to buy the MGM Springfield in Massachusetts.The price for Bellagio represents 17.3 times the initial annual rent of $245 million, MGM said. Bloomberg News previously reported Blackstone was in talks to buy and lease back the Bellagio and MGM Grand. The property is being purchased by the Blackstone Real Estate Investment Trust.MGM will use the proceeds to bolster its balance sheet and return capital to shareholders. Murren said the transactions will help the company target new growth opportunities, including one of the new integrated resource licenses in Japan and sports betting in the U.S. MGM has no plans to develop any more casinos in Las Vegas, he said.Earlier DealsRuffin, a real estate mogul raised in Wichita, Kansas, will pay $662.5 million in cash for Circus Circus. The $162.5 million balance will be in a note that’s due in 2024. The parties expected to deal to close in the fourth quarter. The resort has 2,300 employees and includes a 20-acre RV park and 37-acre festival grounds.Ruffin bought the Treasure Island casino from MGM for $746 million in 2009. The company then was trying to raise cash following the financial crisis and complete construction of its CityCenter project.He fixed up Treasure Island, once known for its daily pirate battles outside, adding a western-themed barbecue restaurant and other amenities aimed at Middle American guests. Earlier, he partnered with Donald Trump on the Trump International Hotel, a non-casino hotel and condo development on the Strip.Circus Circus, now more than 50 years old, was once a flagship property of publicly traded Circus Circus Enterprises. MGM ultimately acquired that company. The resort itself is located at the less-trafficked north end of the Strip.The sale of Bellagio will provide a benchmark value to attract bidders for MGM’s remaining real estate interests, Murren said, including the CityCenter properties that are co-owned with Dubai World, and the flagship MGM Grand.Murren also said he wasn’t concerned that Penn National Gaming Corp., another casino operator that had moved to a similar asset-light strategy, trades at a lower multiple of earnings than other casino companies. He said MGM’s assets make it unique.MGM Resorts enlisted Weil, Gotshal & Manges as its legal counsel, while PJT Partners and JPMorgan Chase & Co. served as financial advisers. Blackstone’s REIT used Citigroup Inc. and Morgan Stanley as its financial advisers. Simpson Thacher & Bartlett LLP, meanwhile, was its legal counsel.(Updates with advisers in last paragraph)To contact the reporter on this story: Christopher Palmeri in Los Angeles at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, John J. Edwards III, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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MGM Resorts International said on Tuesday it would sell its Bellagio and Circus Circus resorts in Las Vegas in separate deals valued at about $5 billion, as the U.S. casino operator seeks to monetize its real estate assets and bolster its balance sheet. Blackstone Real Estate Income Trust will acquire the Bellagio for $4.25 billion through a 95-5 joint venture with MGM and will lease it back to a unit of the casino company for an initial annual rent of $245 million. MGM said it would sell Circus Circus Las Vegas to an affiliate of Treasure Island owner Phil Ruffin for $825 million.
Blackstone Real Estate Income Trust will acquire the Bellagio for $4.25 billion through a 95-5 joint venture with MGM and will lease it back to a unit of the casino company for an initial annual rent of $245 million. MGM said it would sell Circus Circus Las Vegas to an affiliate of Treasure Island owner Phil Ruffin for $825 million.
MGM Resorts International said late Tuesday it is selling its Circus Circus casino resort in Las Vegas and a huge interest in its Bellagio resort. MGM shares rose 0.5% after hours, following a 0.4% decline to end the session at $27.87. The company said it was entering a joint venture with Blackstone Group Inc.'s Real Estate Income Trust in a sale-leaseback deal for $4.25 billion, where MGM will have a 5% stake in the JV. The sale is expected to close by the end of the year. MGM also said it is selling Circus Circus for $825 million to an affiliate of Treasure Island owner Phil Ruffin. The deal is made up of $662.5 million in cash and a $162.5 million note due 2024.
Blackstone Real Estate Income Trust (“BREIT”), and MGM Resorts International (“MGM Resorts”) (MGM) announced today that BREIT and MGM Resorts will form a 95%/5% BREIT-led joint venture to acquire the real estate assets of the Bellagio for $4.25 billion in a sale-leaseback transaction. As part of the transaction, MGM Resorts will lease the property from the joint venture and continue to manage, operate and be responsible for all aspects of the property on a day-to-day basis.
LAS VEGAS, Oct. 15, 2019 /PRNewswire/ -- MGM Resorts International (the "Company" or "MGM Resorts") (MGM) today announced that it has entered into a definitive agreement to form a joint venture with Blackstone Real Estate Income Trust ("BREIT") that values the real estate of Bellagio at $4.25 billion, which represents a purchase price multiple of 17.3x rent. In this landmark transaction for the gaming and entertainment industry, the joint venture will acquire the Bellagio real estate and lease it back to a subsidiary of MGM Resorts for initial annual rent of $245 million.
LAS VEGAS, Oct. 15, 2019 /PRNewswire/ -- MGM Resorts International (the "Company" or "MGM Resorts") (MGM) today announced that it has entered into a definitive agreement to sell Circus Circus Las Vegas for $825 million to an affiliate of Treasure Island owner Phil Ruffin. For the 12 months ending June 30, 2019, the property reported Adjusted Property EBITDA of $62 million.
MGM Resorts International announced two real estate deals Tuesday which will bring the company $5.1 billion. The company said it is selling its Circus Circus Las Vegas hotel for $825 million to an affiliate of Treasure Island owner Phil Ruffin. Separately, the company said it has entered a sale-leaseback deal for its Bellagio real estate holdings with Blackstone Real Estate Income Trust.
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