MGM’s CEO says Wynn resignation unlikely to result in megadeal

James Murren

The turmoil surrounding Wynn Resorts Ltd. in the wake of Steve Wynn’s resignation is unlikely to translate into a big acquisition, according the chief executive officer of rival MGM Resorts International.

“It’s a very large organization,” MGM’s James Murren said in an interview in Tokyo Friday. “It would be difficult to believe some entity is going to have the financial wherewithal to make a serious bid for them.”

With the ending of an era in the casino industry after the resignation of Steve Wynn in the wake of sexual-misconduct allegations, analysts are speculating on Wynn Resorts’ future. While many have confidence in new CEO Matt Maddox, the company with a market value of USD17 billion faces multiple challenges including regulatory probes from Massachusetts to Macau, and possible takeover approaches.

Murren is in Japan to promote MGM’s interest in operating a casino resort there. MGM competes with Wynn in the gambling hubs of Las Vegas and Macau, and both are also vying for a spot to operate casinos in Japan, which recently legalized casinos.

“Everyone admires the assets of Wynn Resorts,” Murren said, as they are “very high quality” and the company’s management is talented. Still, he doesn’t see a large private-equity-backed bid for the casino operator.

“I don’t think people are going to see the megadeals,” he said. “Those days are over.” Bloomberg