1. Welcome to VegasMessageBoard
    It appears you are visiting our community as a guest.
    In order to view full-size images, participate in discussions, vote in polls, etc, you will need to Log in or Register.

Do you think MGM will buyout Caesers, considering the debt issues they are having?

Discussion in 'Casino Industry & Development' started by samanthaelizabeth, Jul 10, 2014.

Thread Status:
Not open for further replies.
  1. samanthaelizabeth

    samanthaelizabeth Low-Roller

    Joined:
    Jun 16, 2014
    Messages:
    239
    Location:
    Los Angeles
    Do you think MGM will buyout Caesers, considering the debt issues they are having? Just looking for opinons...:wave:
     
  2. ams722

    ams722 Side Bet Shunner

    Joined:
    Aug 27, 2012
    Messages:
    1,412
    Location:
    Pergatory
    Trips to Las Vegas:
    15
    Short answer: no.
     
  3. sybgal

    sybgal VIP Whale

    Joined:
    Apr 19, 2004
    Messages:
    5,122
    Location:
    Indiana
    Trips to Las Vegas:
    29
    Very unlikely.....don't give them any ideas!! lol
     
  4. discin311

    discin311 Tourist

    Joined:
    Jul 24, 2011
    Messages:
    83
    Trips to Las Vegas:
    2
    if there hurting so bad then why are they redoing everything?
     
  5. DrLect

    DrLect Low-Roller

    Joined:
    Jul 1, 2013
    Messages:
    160
    Location:
    The North Coast
    Trips to Las Vegas:
    29
    It would be more cost effective for MGM to try to cherry pick specific assets after the bankruptcy!
     
    New Year's Eve Dinner
  6. samanthaelizabeth

    samanthaelizabeth Low-Roller

    Joined:
    Jun 16, 2014
    Messages:
    239
    Location:
    Los Angeles
  7. LolaDoggie

    LolaDoggie VIP Whale

    Joined:
    Jul 6, 2009
    Messages:
    2,377
    Trips to Las Vegas:
    6
    They can't afford it either. I suspect we're going to see each giant dropping at least one if not two more properties each. We'll start to see more competition and variety on the strip again.
     
  8. ultima-forsan

    ultima-forsan Tourist

    Joined:
    Jul 7, 2014
    Messages:
    71
    Location:
    Montreal, QC
    Trips to Las Vegas:
    3
    Hey is it me or all the casinos and hotels are going bankrupt around LV or AC? What will happen if they all close? I know I'm going a bit pessimistic but if they don't really make money out of it for years, I don't see why they are trying hard to make it happen.
     
  9. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

    Joined:
    Jul 11, 2010
    Messages:
    6,833
    Location:
    Tennessee
    Trips to Las Vegas:
    50
    Buyout? Never happen. At least not in the present financial market. That's a pretty big chunk for MGM to take on. A merger .... well, its more likely than a buyout, but I also don't see it happening. What does MGM have to gain? The total rewards customer data and more regional casinos, I guess. And MGM seems more focused on improving/finishing the properties it already has in this market and opening new properties abroad.
     
  10. seviay

    seviay High-Roller

    Joined:
    Jun 21, 2011
    Messages:
    667
    Trips to Las Vegas:
    10
    I don't know who in their right mind would take on the insane debt Caesar's has. As far as the renovations that CET is doing at various properties, they're polishing the brass on the Titanic, man...it's all going down.
     
  11. DeMoN2318

    DeMoN2318 The DERS

    Joined:
    Aug 6, 2012
    Messages:
    2,072
    Location:
    Arizona
    Trips to Las Vegas:
    25
    Which a large percentage of are also MLife members...
     
  12. MTROH

    MTROH Low-Roller

    Joined:
    Jul 20, 2011
    Messages:
    113
    Location:
    NE OHIO
    Trips to Las Vegas:
    23
    I cant imagine anyone who would want any of the 40 scattered casinos belonging to CET, for example a dumpy 70 year old department store in Downtown Cleveland called the Horseshoe or a dying thoroughbred racetrack racino called Thistledown, next to the gutted Randall Mall in Cleveland. At least MGM attempts to maintain their Vegas casinos, CET lets theirs fade away. CET has been trying to unload the Rio for more than 5 years with no interest whatsoever.
     
  13. leo21

    leo21 VIP Whale

    Joined:
    Jan 9, 2010
    Messages:
    4,706
    Location:
    Chicago South Suburbs
    Trips to Las Vegas:
    14
    MGM still has to pay off its own debt, remember? City Center didn't pay for itself all that quickly and some think some of their own properties could be on the block. Personally, I could see them picking off PH but I don't see the point of them doing much more than that.
     
  14. RockyBalboa

    RockyBalboa VIP Whale

    Joined:
    Jan 24, 2010
    Messages:
    4,081
    Location:
    Houston by way of Philadelphia
    Trips to Las Vegas:
    12
    Like many have said I wouldn't expect to see that happen.

    UK's mention about their focus on their own properties is how they need to play it. Better their own product and strengthen what they already have. They have the stronger of the two brands, I think, so if they kept their focus on what they have now rather than taking on a huge load of new debt they'll continue to distance themselves from CET.

    However I would also be in favor of some properties being sold off to other companies or to independents as competition is better for the consumer.
     
  15. earth-3

    earth-3 High-Roller

    Joined:
    Jun 6, 2003
    Messages:
    996
    Location:
    Lisle
    Trips to Las Vegas:
    18
    Add on the fact last month, a junket organizer named Huang Shan, disappeared owing 1.3 Billion U.S. dollars to Macau's casino owners. MGM was a big player in this scenario. That was cold hard cash, not inflated worth, that appeared on the books.
     
  16. Kickin

    Kickin Flea

    Joined:
    Aug 10, 2012
    Messages:
    3,414
    Besides the balance sheet issues for MGM to take on the financing, I highly doubt it would even be approved on antitrust grounds. Probably not by the FTC but by the local Nevada gaming regulators. It would give MGM almost the entire strip.
     
  17. 44inarow

    44inarow VIP Whale

    Joined:
    Sep 8, 2012
    Messages:
    1,787
    Location:
    New York, NY
    Trips to Las Vegas:
    23
    I think they'd run into serious antitrust issues if it happened, is the bigger problem. Not just from a federal perspective, but I can't imagine NV gaming regulators letting it go through, plus they'd have trouble with AC, where I believe MGM isn't currently licensed (though in the process of getting re-licensed, after relinquishing and putting their half of Borgata in trust).
     
  18. 44inarow

    44inarow VIP Whale

    Joined:
    Sep 8, 2012
    Messages:
    1,787
    Location:
    New York, NY
    Trips to Las Vegas:
    23
    Didn't see this before I wrote my response. GET OUT OF MY HEAD! :drunk:
     
  19. dankyone

    dankyone VIP Whale

    Joined:
    Oct 15, 2011
    Messages:
    1,449
    Location:
    Los Angeles
    Trips to Las Vegas:
    105
    Beyond the anti trust issues---why would MGM even want any of the LV props other than Caesars Palace?!? Not gonna happen.
     
  20. Grid

    Grid VIP Whale

    Joined:
    Jan 17, 2011
    Messages:
    1,478
    Location:
    Chicago
    Trips to Las Vegas:
    31
    And if they got CP that would give them the entire West side of the strip from Mandalay to Mirage (TI was once theirs and that would have completed the entire West strip) But CP if CET's flagship and that would be the last thing they sell.

    I always thought it was funny that MGM Corps namesake casino/hotel is the lone MGM prop on the CET side. And the CET namesake is on the MGM side.
     
Thread Status:
Not open for further replies.