MGM, Wynn Resorts cut off talks over Encore Boston Harbor
The negotiations are over just as quickly as they began
The negotiations between Caesars Entertainment and MGM Resorts International that were rumored to center on a merger were the fastest negotiations to fail in the history of casino acquisitions. However, there is a strong runner-up in the recent negotiations between MGM and Wynn Resorts. The two had reportedly gotten together to discuss a potential deal for Wynn’s Encore Boston Harbor resort, but have already called off any future conversation.
Wynn had to fight to hold onto the Encore in the face of the investigation of its founder and former CEO, Steve Wynn. The company emerged with a huge fine, but was able to retain its license for the resort, only to reportedly start to discuss a deal with MGM to sell the casino operator the $2.6-billion project.
Wynn didn’t offer a lot of details why the deal was canceled, only stated, “After careful consideration we have agreed to cease discussions with MGM Resorts.” As such, it will still plan on managing the facility and still plans on holding the grand opening next month.
MGM was a little more forthcoming with information regarding why the talks may have fizzled. It said in a statement, “We have noted the anxiety raised by various stakeholders regarding a transaction and this troubles us at MGM … We think the best course of action is to discontinue discussions concerning this opportunity.”
MGM would have had to give up its existing casino in Massachusetts in order to take over the Encore, in accordance with state law. That move may have ruffled too many feathers, leading the company to take a step back and re-evaluate its options.