This latest move by MGM, however, contradicts CEO James Murren’s intentions, who claimed early this year that his company is not interested in bidding for Wynn Resorts. The latest development could partly be due to the fact that Steve Wynn’s exit from his CEO role after the sexual misconduct claims and selling off his entire stake in Wynn Resorts.
Wynn derives a huge percent of revenue from the world’s largest gambling hub-Macau, China—nearly 75 percent of revenue. The complication that MGM should consider before buying Wynn is that the all gaming license of Wynn may be canceled by China in 2022 and Wynn Resorts is one of those companies facing the threat. The risk further intensifies considering the ongoing trade war between the U.S. and China.
Though MGM seems to be a potential bidder, Wynn can even expect offers from Galaxy that has a market value of $37 billion and Genting. Apart from this, Caesars Entertainment, which recently rose from bankruptcy, would also be interested in grabbing Wynn’s Macau assets.