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<p>Las Vegas based casino operator <span style="color: #f88000;">MGM Resorts</span> announced on Tuesday that it was pulling out of a deal to acquire UK’s sports betting company Entain. Entain is the owner of Ladbrokes. MGM said that after careful consideration, it decided not to submit a revised proposal after its second offer of $11bn via an all stock deal at an exchange ratio of 0.6x was rejected. This was <a href="https://bondevalue.com/news/6-new-deals-today-67-of-bonds-traded-up-in-2020-led-by-ig-china-sets-limit-on-loans-to-developers-vedanta-raises-1-4bn-in-private-debt/?utm_campaign=BEV%20Newsletter&amp;utm_source=hs_email&amp;utm_medium=email&amp;_hsenc=p2ANqtz-_pHSlikV0zXRnBKTWEhN9coxG7CGmxX3DpcXhsxbHeKyfC4ZHa1LlRFWG62R2KyFdgstGg#mgm" target="_blank" rel="noopener noreferrer">MGM’s second bid</a> after its earlier all-cash bid of ~$10bn was rejected by the British gaming company. If the deal had gone…</p>

Morningstar

Morningstar, Inc.

Equity Bottom-Up

Although we think Eldorado’s domestic casinos stand to see around a mid-single-digit revenue uplift from being added to Caesars’ 55 million loyalty program once the acquisition is completed in the first half of 2020, our analysis points to only a handful of Eldorado’s 26 facilities overlapping with just MGM’s Mississippi and Atlantic City properties. Overall, we estimate these regional properties for MGM amount to 10% and 11% of total 2019 EBITDA and sales, respectively, and think these…

While no-moat MGM's first-quarter results tracked near our 2019 sales and EBITDA growth estimates of 7% and 10%, respectively, we see a handful of drivers on the horizon (cost-cutting, improving Vegas calendar, cash flow acceleration, and Japan) for a company trading at an attractive margin of safety to our $38 valuation, which we don't plan to meaningfully change
After its Profit Growth Plan drove $500 million in cost savings over 2015-2017 (exceeding initial targets of $300 million), MGM…

We think MGM Resorts is positioned to maintain its leading presence in the lower-growth lower-barrier Las Vegas region (49% of estimated 2019 EBITDA) while participating in the attractive long-term growth opportunity of Macau (19% of EBITDA). MGM Resorts has expanded its room share in Macau to 8% from 3% with its Cotai property, which opened in February 2018. The offset to this expanded room presence is the continued long-term shift away from VIP and gaming revenue toward nongaming and mass play…

United States

MGM Resorts International operates gaming, hospitality and entertainment resorts.  The Company owns properties in Nevada, Mississippi and Michigan in the United States; and owns interests in properties in Nevada and Illinois in the United States, and Macau. MGM Resorts also offers hospitality management services for casino and non-casino properties around the world.

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