There has been rumor for a while that that either, or both, Bellagio and Mirage would be put on the market to help MGM Mirage amidst their finanacial concerns. Yesterday, that was put to bed and both casinos will likely not be sold.
MGM Mirage today unleashed a series of financial initiatives aimed at bolstering its balance sheet — and signaled its Bellagio and Mirage hotel-casinos won’t be sold anytime soon…Take on new debt in the form of $1.5 billion in senior secured notes — bonds secured by the Bellagio and Mirage assets, meaning they couldn’t be sold unless other security is designated to back up the bonds.
While this saves both of those casinos, it moves some of the other Las Vegas properties up the ladder to be sold. Mandalay Bay (a favoritecasino of mine) seems to be on top of the chopping block now. Initially I thought that MGM Mirage would look to divest assets outside of Las Vegas if they needed to raise funds and they still might end up doing that. I’m not sure the price to buy on the Vegas strip is right.
If you were buying a business would you rather be a big fish in a small sea or one of the many in the most popular desitnation? I would prefer to be the big fish and move from there.