Private money has gone on a months-long shopping spree for casino operators, which are valued for their cash-generating ability and significant real estate holdings. DAMN, Only had 16.2 billion in the bank.

dan any idea on how this will affect the current no satting online to next years events

only 16.7bill? nat got more fot the db

That would be a good question if it was that simple. You're assuming the stock price is what the company is worth. The buyer thinks it's worth more. Buyouts like this often never happen because shareholder lawsuits, etc over things like what the true value of the company is.

In one sense, what something is worth is what someone will pay for it. The buyer may factor in things they will change or markets they believe current management isn't tapping. Or some event in the future that makes a company worth paying 36% more than it's currently valued.

It's a loaded question you ask, but the simple answer is there are a million ways to determine what something is worth....and at the end of the day, it may just be what the other person is willing to take.

From what I hear, the company who bought them out is going to sell everything piece by piece, and MGM will end up buying up everything and owning pretty much the entire strip. MGM has been wanting the WSOP for a bit, and I guarantee you MGM will run it right.

Clay i really hope MGM takes over the WSOP but MGM owning everything on the strip is not a good thing. I make a point to stay on MGM properties when i visit Vegas but competition is a good thing.

theres always the wynn and sands/venetian, but yeah mgm getting damn near monoply = less comps one would think

Because they plan to make more than 56% on their investment when they put the company back on the market thus netting themselves 20+%...They'll probably leverage the company to the hilt with debt since it generates so much cash, use the cash to pay down the debt and pay themselves a fat dividend and then spin the company back out to the public in 2-4 years if all goes according to plan and they will have billions of dollars in their pocket...Not a bad gig if you can get it...

Glad I bought some HET earlier this year. :)

They probably didn't pay more than what it's worth.

$16.2 Billion in 2006 dollars to make how much ROI?

The ROI is what the company is worth. If 5 yrs from now the shares are valued at 36% higher than today, they have a profit going forward.

Majority of purchases are made from win/win agreements. Selling a company at cost or for a loss is what I don't get, unless you know it's tanking fast.

I believe Nevada law has some protections in place against this. A remember a large deal several years ago where the purchaser had to sell several other properties to keep their %ownership under a certain percentage.

mother fXXXXX.. I was just looking at that..f me. it was at like 58 in july.. caps at 90..f free money :(