MGM sells Mirage casino: “We’ve had enough of Las Vegas”

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By Jordan Valinsky, CNN Business

MGM Resorts puts the Mirage hotel and casino complex in Las Vegas put up for sale, ending a 21-year-old property of one of the Strip’s most famous properties.

The company made the announcement in its earnings call Wednesday night, telling analysts it didn’t want to invest any more money in the 32-year-old property best known for its exploding volcano. No buyers or prices for the Mirage have been revealed.

MGM Resorts CEO Bill Hornbuckle said on the call that they were in “the early stages of a process of selling the operations” of the Mirage. “This will allow us to maintain our existing exposure in Las Vegas while focusing on the complementary and diverse nature of our offerings in our hometown,” he said.

“It’s 77 acres, a lot of it is really underdeveloped in the context of what might be there,” Hornbuckle said of the Mirage’s potential growth under new owner. “When we look at the allocation of capital and the notion of diversification, we’ve had enough of Las Vegas. “

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

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

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

MGM shares jumped 4% in pre-market trading following the sale’s announcement and posting profit in the third quarter.

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