MGM is selling Mirage casino: ‘We have enough of Las Vegas’ | News

0
75

MGM Resorts put the Mirage Resort and Casino in Las Vegas on sale, ending 21 years of ownership of one of the Strip’s most famous properties.

The company announced on its conference call late Wednesday, telling analysts that it no longer wants to invest money in the 32-year-old property best known for its exploding volcano. No buyer or price has been announced for the Mirage.

MGM Resorts CEO Bill Hornbuckle said on the call that they are in the “early stages of a process to sell the operation” of the Mirage. “This allows us to maintain our existing Las Vegas presence while focusing on the complementary and diverse nature of what we offer in our hometown,” he said.

“There are 77 acres and much of it is really untapped in the context of what could be there,” said Hornbuckle of the Mirage’s potential growth under a new owner. “If we look at capital allocation and the notion of diversification, we’ve had enough of Las Vegas.”

MGM owns about a dozen properties in Las Vegas, including the Bellagio, MGM Grand, and Mandalay Bay. The Mirage opened in 1989 under previous owner Steve Wynn and was bought by MGM in 2000.

Mirage is just one of many sales that have taken place in Las Vegas in recent years. In 2019, MGM Circus sold Circus for $ 825 million and formed a joint venture with private equity firm Blackstone to acquire the Bellagio property and rent it back to MGM Resorts under a $ 4.25 billion contract .

MGM is using the money to invest billions of dollars in a new casino in Osaka, Japan. It is also expanding sports betting in the United States. But it isn’t giving up the Las Vegas Strip entirely, announcing in September that it is buying the Cosmopolitan for $ 1.6 billion. This transaction is expected to close next year.

MGM stock rose 4% in pre-trading hours after the sale was announced and a profit was posted in the third quarter.

The CNN Wire

™ & © 2021 Cable News Network, Inc., a WarnerMedia company. All rights reserved.