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Wynn Adelson merger?

Last edit: jucifers on Friday, 1st July 2016 10:05 am
Last response by MinVegas 9th July 4:26pm

This "Gaming Today" article explores the possibility of a merger between Wynn Resorts and Las Vegas Sands Corp:

While a merger seems far-fetched, what is the likelihood that Wynn and Sands could establish a joint venture company to develop Paradise Park? Wynn could build high-end resorts on the western half of the golf course, while Sands could focus on mid-market convention hotels on the eastern half of the golf course. The proposed mountains in the middle of the lake could provide a barrier separating the higher end guests from the lower end guests.

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 Dorian responded on Saturday, 2nd July 2016

Shelly and Stevie? Not in a million years.

 Diablo responded on Sunday, 3rd July 2016

These rumors have been around for a long time. While anything is possible, i find it funny that they always pop up whenever wynn's stock price take a drop. Coincidence? LOL

 vespajet responded on Monday, 4th July 2016

I don't see these two companies ever working together on a project other than to keep online gambling down.

 jucifers responded on Tuesday, 5th July 2016

Steve Wynn and Donald Trump were the worst of enemies once, and now they're "friends". If Steve and Sheldon's interests aligned, would they bury the hatchet?

Wynn needs to monetize the golf course as quickly as possible. Would it make sense for Wynn to sell off the eastern half of the golf course to an Adelson or a Fertitta, and split the cost of developing his Paradise Park amusement/water park?

 Chuckmonster replied on Tuesday, 5th July 2016

I'm curious why you think Wynn needs to monetize the golf course as quickly as possible. I don't see any reasons other than Steve's desire to do so.

Re: a Wynn/Adelson merger... this was, is and always will be a non-starter, at least while both men are still alive. Neither of these goons will play second banana to the other. Megalomaniacs don't make good partners.

Steve is too smart to partner with Sheldon because he knows that Sheldon doesn't make a good partner to anyone. Adelson loves to engage in litigation with his business partners until he gets what he wants or exhausts all other options.

 jucifers replied on Tuesday, 5th July 2016

I think the institutional investors want to see the golf course monetized as quickly as possible, and Steve wants to keep them happy. Wynn has a lot of problems right now: pending lawsuits, the depression in Macao and the prospect of new competition on the North Strip. A cash infusion from developing the golf course could alleviate those problems and ensure that Wynn is the CEO of Wynn Resorts for many years to come.

 adztheman replied on Tuesday, 5th July 2016

Whatever competition there might be on the North Strip, its still several years from fruition.

As long as Steve can keep his international guests happy, and keep the kids happy with new nightclubs, he'll be just fine.

 HedgedBettor replied on Tuesday, 5th July 2016

Jucifers - The street doesn't want to see more hotel rooms being added in Vegas with demand looking soft. They want Wynn to sit back and milk free cash flow. I don't think he develops the golf course in the near term, though Steve doesn't have to listen to Wall Street. With multivoting shares there's no chance of him getting kicked out.

A Wynn/LVS merger globally is impossible (wouldn't pass MOFCOM/Macau regulators) but a Vegas JV would make a ton of sense. But can anybody really imagine it happening?

 jucifers replied on Wednesday, 6th July 2016

Wynn's current plans are to close 8 holes of the golf course this year to break ground on Paradise Park. Why should Wynn keep an 8 hole golf course, if the land can be developed for more money than the course can produce?

Steve is 74 years old. The eastern half of the golf course will never be as valuable as the western half. Would it make sense to sell the eastern half of the course to a partner who could split the development cost of the Paradise Park amusement/ water park?

 MinVegas replied on Saturday, 9th July 2016

Chuck: "Steve is too smart to partner with Sheldon because he knows that Sheldon doesn't make a good partner to anyone."

And likewise Sheldon has watched Steve engage in litigation and "because I said so" board actions against business partners both professional and personal. Even putting aside their combined ages, neither side has any reason to work with the other.

If Wynn would JV with anyone, the only one that really makes sense is Caesars because if you look at what they've got in swank they have CP and then nuttin'. I guess he could sell half a golf course for a stake in Caesars Palace, since that's an investment in the one thing on the Strip that has managed to remain constant and compete with everything that's been built around it for a half-century.