The casinos are two of the crown jewels in MGM Resorts’ portfolio of gaming resorts in the U.S. and China. Together, the properties have more than 10,000 rooms and about 315,000 square feet of casino space.
The companies have yet to agree on a transaction and one may not be reached, said the people, who requested anonymity because the talks are private. The terms of the potential deal couldn’t be learned. Representatives for Blackstone and MGM Resorts declined to comment, said Bloomberg.
MGM Resorts shares rose as much as 5% before settling up 1.4% to US$29.47 at 12:06 p.m. in New York.
MGM Resorts has been exploring selling and leasing back the properties individually or bundled together, Bloomberg News reported in July. Property sales free up cash for casino companies to expand while letting them continue to manage their resorts.
The Las Vegas-based company in January formed an independent committee to evaluate ways to extract value from its real estate portfolio. Activist investor Starboard Value built a position in the company with plans to push for changes, Bloomberg News reported that month.
MGM Resorts expects to share the results of the review in early fall, Chief Executive Officer Jim Murren said in a conference call with analysts in July.
MGM Resorts could receive proceeds of up to US$4 billion selling the Bellagio and nearly US$3 billion from a sale of MGM Grand, analysts with Bloomberg Intelligence said in July.
Blackstone, a New York-based private equity firm, has a history in the gaming sector. It’s holdings include Spain’s Cirsa Gaming Corp., which it acquired last year for about US$1.8 billion, and the Cosmopolitan of Las Vegas, which it acquired in 2014 for US$1.7 billion.
Source: GMB / Bloomberg
