Categories Other Industries

Steve Wynn exits paving way for Galaxy

Steve Wynn, the founder of Wynn Resorts (WYNN), bids adieu to the gambling company by selling his entire stake. This latest development is related to the controversy saga that started last month. On Wednesday, Wynn sold about 4.1 million shares for about $740 million and on Thursday, he sold his remaining 8 million shares through private transactions.

After his exit, Wynn resolved a dispute with his ex-wife Elaine Wynn lifting the previous limitations on her rights to sell her stake in Wynn Resorts. Elaine Wynn, who holds around 9% stake in Wynn Resorts, has not yet sold any of her shares.

Wynn Macau Resort
Courtesy: Wikimedia Commons

Yet another interesting twist in this story is that Galaxy Entertainment Group Ltd. has acquired an approximate 5% stake in Wynn Resorts. Galaxy bought 5.3 million shares of Wynn Resorts for $927 million, generating an exciting opportunity to change the gaming industry landscape.

Wynn Resorts plans to use the proceeds from the Galaxy transaction to pay off an $800 million loan. After having a negative trend in the past two days, Wynn shares are pulling back during today’s morning session.

Over the coming months, operating licenses will be reviewed and handed out and the presence of Galaxy as a major shareholder will bode well for Wynn Resorts. The final adieu of Steve Wynn will perhaps put an end to the scandalous allegations and will most likely reduce its impact on the company.

Galaxy bought 5.3 million shares of Wynn Resorts for $927 million

Some expect that Galaxy could perhaps acquire Wynn Resorts in the long run. While Galaxy might not wish to acquire the entire Wynn Resorts entity, it could look at purchasing the assets of Wynn Macau, which would create a major gaming company, giving Galaxy a strong position in Macau.

The purchase of Galaxy’s stake in Wynn Resorts could also be part of efforts to reduce foreign dominance in Macau’s gaming industry. Galaxy plans to expand its footprint beyond Macau and the casino operator is looking to enter the Philippines as well as Japanese markets.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top