Sale Bellagio MGM Grand

Blackstone in talks to buy-leaseback the MGM Grand and Bellagio

By Sophie Couard
MGM Resorts in negotiations with Blackstone Group Inc. to sell MGM Grand and the Bellagio.

Rumours have surfaced that the MGM Resorts is in negotiations for the sale Bellagio MGM Grand to Blackstone Group under a buy and leaseback agreement. We'll take a look at this juicy bit of news next!

Sale Bellagio MGM Grand and leaseback

Blackstone Group Inc. Is a financial services company that manages several private equity and alternative asset management strategies. They have been eyeing the real estate sector and stockpiling cash in anticipation of pulling the trigger on an investment. This wouldn't be the first time either. In July 2017 they acquired Clarion Events for $744.3 million followed by the fintech company Paysafe for $3.69 billion. The negotiations are believed to be at an advanced stage. This is not Blackstone's first foray into the gaming sector after acquiring properties in Spain and Las Vegas.

Blackstone Group Office

The sale, if it goes through, is expected to be valued at around $4 billion.

MGM Resort change of heart

It would seem that Jim Murren, the chairman and CEO of MGM Resorts International Group, had a change of heart after having previously stated that he would never sell either of these two crown jewels. He has now conceded that he may consider letting them go. 

Buy and leaseback agreements are not unusual in the business world as they provide companies with much-needed liquidity. Speculation is that MGM Resorts could receive as much as $4 billion from the sale. The market seems to be taking the rumour in stride as MGM Resorts' share price has risen by about 3% from $28.76 to $29.69 since the announcement.

We'll see whether the talks of the sale Bellagio MGM Grand develop into a deal in the coming weeks.

By Sophie Couard
By Sophie Couard - EDITOR

I am a great fan of gambling, I became a croupier to finance my studies. After my high school diploma in economic and social sciences , I obtained a bachelor's degree in economics and then a master in philosophy with a thesis on player behavior. After working in an online casino customer support, I became a writer on FeedBACK Casino.