One of the revelations from yesterday’s 3Q results announcement was that MGM has received an offer of about $250 million for the 50% share of the Borgata that the company is obliged to sell thanks to the Pansy Ho/Casino Control Commission imbroglio. The bigger isn’t named, but since it is mentioned that Boyd has the right to match the offer, it’s a fair guess that Boyd isn’t the bidder, unless they have some kind of Tyler Durden thing going on at BYD HQ.
So who’s the mystery bidder?
– Someone we’ve never heard of, who has never been in the casino business, and we won’t know much about. By their very nature, it’d be impossible to speculate about who that would be.
– Penn National: On something of a buying spree, but with Peter Carlino’s talk of a “death spiral” a while back, doesn’t seem likely. Although it’s just occurred to me the “Death Spiral” would be a good name for a metal cover band.
– Carl Icahn: Why not? He tried to pry Trump Entertainment Resorts away from Trump, and this investment probably has more upside. It’ll definitely continue throwing off cash for the foreseeable future, and if the market miraculously turns around could be sold at a premium.
– Genting: They’d get a player database for Aqueduct, and maybe a place to ship any premium players they find. Not likely, but it could work
– Harrah’s Entertainment: Because owning 4.5 casinos in a declining market makes more sense than owning 4. Hey, they’ve been increasing their Strip footprint under the same logic.
– Barr/Bashaw/Gateway Group: It’d be a nice way to get into the gaming market, assuming they have the money for it. It would also eliminate their need for the development of the esrtwhile ACHS-area land.
– Isle of Capri: I don’t expect this, but it’s a possibility.
– Wynn or LVS: I can’t see this, in any way, shape, or form.
– In the worst resolution to a cliffhanger since Vince McMahon was revealed as the “Higher Power,” Donald Trump will announce that he is, in fact, the mystery man. “It was me all along, Murren,” he will taunt, also taking credit for the 3Q slowdown in Strip casino revenues for MGM Resorts.
In other words, I have no idea who this mystery bidder is. Any thoughts?