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

Do you think MGM will buyout Caesers, considering the debt issues they are having? Just looking for opinons...

 

Short answer: no.

 

Very unlikely.....don't give them any ideas!! lol

 

if there hurting so bad then why are they redoing everything?

 

It would be more cost effective for MGM to try to cherry pick specific assets after the bankruptcy!

 

True...

 

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.

 

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.

 

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.

 

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.

 

Which a large percentage of are also MLife members...

 

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.

 

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.

 

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.

 

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.

 

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.

 

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).

 

Didn't see this before I wrote my response. GET OUT OF MY HEAD!

 

Beyond the anti trust issues---why would MGM even want any of the LV props other than Caesars Palace?!? Not gonna happen.

 

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.