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Mirage NOT to be sold

Discussion in 'Casino Industry & Development' started by zing, Aug 4, 2015.

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  1. zing

    zing Low-Roller

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    According to Jim Murren during this morning's MGM earnings call "The Mirage is not on the market."
    Now, it's possible it's not on the market because it's already sold, but more likely this was just a rumor and it's not happening.
     
  2. shokhead

    shokhead I'm no big spender!

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    May an MGM rumor to see what the market is?
     
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  3. Blonde_4_ever

    Blonde_4_ever "The Welfare Queen of Windsor"

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  4. StingerHook

    StingerHook Low-Roller

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    You can truthfully say something is not on the market if you've already got a buyer lined up, though, right?
     
  5. h0und10

    h0und10 Low-Roller

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    My thought exactly lol..
     
  6. shokhead

    shokhead I'm no big spender!

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    That's the game, yep!
     
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  7. tringlomane

    tringlomane STP Addicted Beer Snob

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    I was hoping a no sale was more clear...bah. Guess I'll keep waiting.
     
  8. leo21

    leo21 VIP Whale

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    Translation: the deal fell through.
     
  9. 44inarow

    44inarow VIP Whale

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    "Truthfully", yes, but considering they're a public company it'd be risky; in addition, he was specifically addressing the reports that Mirage was being sold, as opposed to just speaking in the abstract. Much safer to just not comment if there is, in fact, a transaction contemplated or underway.
     
  10. lithium78

    lithium78 High-Roller

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    Or... maybe the Mirage is a respected and profitable casino that attracts mid-rollers and MGM wants to keep the business?
     
  11. mikeyvegas1

    mikeyvegas1 Low-Roller

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    It could be the kiss of death like in professional sports when the GM makes the statement of confidence and standing behind the coach when the team is doing crappy and then 2 weeks later the coach gets the ax.
     
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  12. shifter

    shifter Degenerate Gambler

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    the way he phrased that is vague enough to leave all options open.

    they sell, "it wasn't on the market, but we got a great offer".

    they don't sell, "it was never on the market anyway".

    it's the same way trade rumors are quashed in the pro sports world.
     
  13. hammie

    hammie VIP Whale

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    Everything's for sale. Whether MGM is marketing it is another story.
     
  14. Kolmeseiska

    Kolmeseiska Low-Roller

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    I don't know if this is just my wishful thinking but the CEO didn't really need to comment on this at all. If the property is being sold, he could've just ignored the subject altogether but he chose to say it's not for sale. Therefore, I lean towards that it's actually true, it's not being sold.
     
  15. Carol1113

    Carol1113 High-Roller

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    I hope it is not for sale as it is our favorite place with the best host I have ever had.
    We are just so comfortable there and enjoy it so much
     
  16. NickPapageorgio

    NickPapageorgio OG of the Sal Sagev Hotel

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    Bingo. The fact that a rumor snowballed into a CEO response, there was something happening that obviously didn't transpire. If there was zero activity to begin with, Murren wouldn't have commented.

    Nick:beer:
     
  17. leo21

    leo21 VIP Whale

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    Agreed. It shouldn't have taken a week for a reponse, especially since the rumor hit the mainstream press.
     
  18. nostresshere

    nostresshere Mr. Anti Debit Card

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    My house is "not on the market", but if someone knocked on the door with a decent offer, I might sell it.


    "Not for sale" and "not on the market" can easily be two different things. He said "not on the market".

    I would agree though, that the chances are there is no deal. Might have been one, but not now.
     
  19. Funkhouser

    Funkhouser In Charge of the Big Door

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    I have never known a company to not consider selling an asset, unless that asset was key to the growth strategy and making double digit annual growth rates.

    So I think what he may have been saying is MGM is not actively marketing their properties. There's a huge difference, since typically just to have a conversation with prospective buyers it has to
    go thru an executive committee. Then they have to establish an intial term sheet. Next you have a period of due diligence prior to agreeing to a final bid submission. Finally you have all
    the little details to reach signing.

    Example I have seen deals go south where the bid price was agreed, but broke down on employee transition. Basically where the corporation selling the asset wants the buyer to assume X% of headcount at same level of pay and benefits, but the overhead is out of step with the revenue and growth targets. This is pretty common place when buyers are leveraging an equity firm to help fund the deal. So my best guess is a deal was in the works under a non disclosure agreement or exclusivity agreement, and it broke down in the final throws.

    It's amazing how things are made to look good in corporate accounting for 10K and 10Q filings, but a buyer looking closely at the cash flow and liabilities might see something as a hindrance to growth for an asset they want to purchase.
     
  20. hammie

    hammie VIP Whale

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    Yes, my former employer had agreed to be acquired by Goldman Sachs but the deal fell through once GS started looking at the books and assets. They turned tail, paid a couple million in fees, and walked away rather than go through with the purchase.
     
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