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Update To The Update: Rumor: Mirage Sold?

By Chuckmonster on Wednesday, 7th January 2009 5:28pm
  » filed under Las Vegas  comments: 14


We're hearing that an announcement stating that the Mirage has been sold is imminent. Additionally, a discussion on an MGM related finance board has also said this with the price tag of $1.2B attached.

Just to be clear... this is not official. A pretty strong rumor, but not official. We've got a number of emails in to various folks seeking confirmation.

I've checked the MGM Mirage corp site as well as Penn National Gaming (who have been mentioned on numerous occasions as the most likely buyer) neither of which have posted any confirmation as of yet.

This could be nothing, but with the slow rumble of Mirage being sold off slowly turning into roar... the shoes might very well be untied and en route to the floor.

UPDATE: MGM pr just told us "No, it is not sold." If there is an announcement, it probably won't happen until markets close at 4pm ET (about 20 minutes from the posting of this update.)

UPDATE To The UPDATE: Sperman tacked to the comments a link to what Robin Leach sez:

experts say Penn National wants to have its Nevada gaming license in place before closing on the deal within the next 90 days.

Which is remarkably similar to what our friends at DailyFiasco said two days prior.

Everyone is just waiting on Penn to get approved for a gaming license before it all moves forward.

Penn National is currently not on the listing of publicly traded corporations which have registered with the NGC.

Sourcing on all the rumors are somewhat thin, but the collection of guests bringing dishes to the the rumor mill is turning it into a potluck buffet. From what we've been able to track down, sources are entertainment company management, casino honchos, financiers, rank and file employees and Robin Leach's "experts."

Could this be the worst kept secret ever? Maybe. But a bigger question is why does Penn National want to keep a lid on this until they get a license



Comments & Discussion:

wow another mgm property gone... how long you think before harrahs starts unloadin properties, ive heard afew rumors on ballys and paris... 14min till closin bell.............

I would understand why MGM Mirage would want to sell another property, but what doesn't make sense is that they want to sell one of their top tier properties. The Mirage isn't Bellagio level, but it's one of their better 4 diamond properties. They just spent hundreds of millions renovating it, so selling it for 1.2 billion won't make them much money. Instead, they should sell a property like Luxor or NYNY and still be able to make just as much money. If they sell the Luxor for $750 mil, just like with the TI, it'll balance out to be the same. Consider the ~ 200-300 million spent on the Mirage renovations. That would cause MGM to make only 900 mil. Instead, they could sell the Luxor and keep one of their nicest properties. Plus, if they sell the Mirage, they'll have to change the name of the company, which would be a hassle.

Why sell Mirage when you could off load Monte Carlo

it's a fascinating thing to say the least... watching the corporations build these empires then be forced to dismantle them due to debt load and the economic implosion.

this is all still just a rumor, nothing official has happened yet.

monte carlo is reserved for future city center expansion.

they won't sell luxor as it is in the middle of the mandalay mile.

the circus circus/kerzner land is already set in motion for the future, and getting a buyer for land alone - no revenue generating casino - is probably a long shot.

in terms of location, TI/Mirage are at the most 'isolated' pieces of their puzzle and could be lopped off without spilling all the guts.

penn national didnt even want the mirage never mind luxor or the monte, they wanted bellagio the whole time... i don think they can sell nyny cause its collateral on some loan, so i thought...

It's sold. The comments from MGM-Mirage's PR Dept. is merely so to not totally screw the stock (Such a sale would definitely have an impact on the stock of MGM-Mirage as well as some of the other gaming companies.). Then again, MGM-Mirage does have a history of making contradictory press releases (Like when they announced they had a deal in place to buy Mandalay Resorts while Mandalay Resorts was at the same time making press releases that they were considering the offer MGM-Mirage had made.).

sperman is right. nyny is at the pawn (pwn) shop.

market is closed. only time will tell (or not)

Makes sense, yet it does not. MGM/Mirage just sold TI, does need cash, who doesn't now. This could get interesting, with ARIA opening, all bets are off. I remember a post not to long ago about the Mirage branding, it has gotten sloppy, and the MGM is a brand all unto its own. They could spin off all the non-core properties and make an all in push for the launch of the new properties. Could be that they spruced up the Mirage just to unload her, after all whats a few million in renovations that was financed if they can get there hands on 1.3 billion in cash if indeed that is what the property sells for. could be that someone with deep cash pockets and nowhere to put it would make an offer but 1.3 billion seems low. All though not a bellagio, the mirage appears like a cash cow. Just thoughts until someone actually pulls the trigger.

I would have sold the Circus, again, the readers here have been telling you CC is the Worst Overall so...

i jus read that, penn want to have its nevada gamin license before anythin is announced... http://www.vegasdeluxe.com/blogs/luxe-life/2009/jan/07/strip-scribbles-rumor-mill-about-strip-hotel-chang/

Well with the sale of TI mere weeks ago the sale sort of makes sense. I would have sold Monte Carlo but it is right next to City Center and NY NY so MGM has a great reason to hold on to those properties. The question is: there was a deal to keep the tram between TI and the mirage and co-share the parking facilities. Would the deal change all that?

I work at Mirage and who we are worried about buying the Mirage is Phill Ruffin, the owner of Ti, the former owner of the Frontier before it closed. He has been trying to make deals with Mirage for a few months and today I heard via a TI employee that it is in the processes of closing a deal and if Ruffin does by the Mirage like we all think, then it should be done by Ferb/March. Ruffin is who you have to look out for. He destroyed Treasure Island and i pray he doesn't buy Mirage

What changes has Phil Ruffin made at Treasure Island? It seems like a nice hotel. Is there a reason I shouldn't stay there? Thanks for the tip.

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