Pansy Ho Fully Exits MGM Resorts Stake, Raising Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Source: seekingalpha
- Stake Sale Context: Pansy Ho sold her remaining 1.2% stake in MGM Resorts through multiple trades between May 28 and June 3, marking a reduction from her peak of 4.8% in 2016, indicating a waning confidence in the U.S. parent company.
- Market Reaction: This sale coincides with a broader trend of insider selling at MGM, leading to increased speculation about potential changes involving the company's international assets, which may undermine investor confidence in MGM's future prospects.
- Acquisition Proposal Impact: Barry Diller's People Inc. launched a non-binding cash bid to acquire the remaining stake in MGM, valuing the deal at approximately $19 billion including debt, which could further influence market perceptions and stock price volatility for MGM.
- Industry Influence: As a key figure in Macau's gaming landscape, Pansy Ho's decisions are seen as significant signals; her exit may affect MGM's operational strategies in Macau and its relationship with the U.S. parent, potentially impacting the dynamics of the entire gaming market.
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Analyst Views on MGM
Wall Street analysts forecast MGM stock price to fall
14 Analyst Rating
5 Buy
7 Hold
2 Sell
Hold
Current: 46.570
Low
29.00
Averages
40.31
High
56.00
Current: 46.570
Low
29.00
Averages
40.31
High
56.00
About MGM
MGM Resorts International is a global gaming and entertainment company with national and international destinations featuring hotels and casinos, meetings and conference spaces, incredible live and theatrical entertainment experiences, and a range of restaurants, nightlife and retail offerings. Its segment includes Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. Las Vegas Strip Resorts consists of casino resorts: Aria, Bellagio, The Cosmopolitan of Las Vegas, MGM Grand Las Vegas, Mandalay Bay, Luxor, New York-New York, Excalibur, and Park MGM. Regional Operations consists of various casino properties: MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica, Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York, and others. MGM Digital is its online gaming portfolio which consists of LeoVegas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MGM and BetMGM Renew Multi-Year Partnerships with MLB
- Partnership Continuation: MGM Resorts and BetMGM have renewed multi-year agreements with Major League Baseball (MLB), extending their relationship that began in 2018, ensuring MGM remains MLB's exclusive integrated resort and casino partner, thereby enhancing brand visibility and market influence.
- Fan Engagement Support: Under the new agreements, MGM will continue to support fan-focused events, including the MLB Awards Week in Las Vegas, aimed at increasing fan engagement and commercializing league-related activities.
- Digital Platform Promotion: BetMGM will promote its sports betting products across MLB's media platforms, including MLB Network and MLB.com, further expanding its market reach in the U.S. and Canada, enhancing brand recognition and user engagement.
- Responsible Gaming Commitment: Both parties reaffirm their focus on responsible gaming, with BetMGM providing relevant tools and enforcing policies to protect the integrity of sporting competitions, ensuring industry credibility while expanding commercial partnerships.
See More
MGM and MLB Renew Partnership Agreements
- Partnership Renewal: MGM Resorts and BetMGM announced the renewal of their multi-year partnership with Major League Baseball (MLB), continuing their role as official gaming partners since 2018, which is expected to enhance brand visibility and customer engagement significantly.
- Marketing Initiatives: Under the renewed agreements, BetMGM will promote its brand and sports wagering offerings across MLB platforms, including MLB Network and MLB.com, which is anticipated to expand its market share in the U.S. and Canada while enhancing user experience.
- Innovation and Responsibility: BetMGM emphasizes that the partnership will drive innovation and responsible gaming, introducing the GameSense program to help customers engage in gambling responsibly, which is expected to bolster customer trust and enhance brand reputation.
- Global Expansion Strategy: MGM Resorts plans to expand its integrated resort business into new markets like Japan, and this renewal not only solidifies its position in North America but also lays the groundwork for future international expansion, reflecting its strategic vision for globalization.
See More
MGM and MLB Renew Partnership Agreement
- Partnership Continuation: MGM Resorts and BetMGM announced the renewal of their multi-year partnership with Major League Baseball (MLB), continuing as MLB's official gaming partner, which enhances their influence in the sports betting sector.
- Marketing Initiatives: Under the renewed agreement, BetMGM will continue to promote its brand and sports wagering services across MLB platforms, which is expected to further expand its market share in the U.S. and Canada, increasing user engagement.
- Enhanced Experience: MGM Resorts will continue hosting events like MLB Awards Week in Las Vegas, aiming to attract more fans by providing unique customer experiences that enhance brand loyalty.
- Responsible Gaming Commitment: MGM and BetMGM emphasize the importance of responsible gaming, launching the GameSense program to ensure customers can enjoy gaming entertainment while receiving a safe and responsible gaming experience.
See More
Pansy Ho Fully Exits MGM Resorts Stake, Raising Concerns
- Stake Sale Context: Pansy Ho sold her remaining 1.2% stake in MGM Resorts through multiple trades between May 28 and June 3, marking a reduction from her peak of 4.8% in 2016, indicating a waning confidence in the U.S. parent company.
- Market Reaction: This sale coincides with a broader trend of insider selling at MGM, leading to increased speculation about potential changes involving the company's international assets, which may undermine investor confidence in MGM's future prospects.
- Acquisition Proposal Impact: Barry Diller's People Inc. launched a non-binding cash bid to acquire the remaining stake in MGM, valuing the deal at approximately $19 billion including debt, which could further influence market perceptions and stock price volatility for MGM.
- Industry Influence: As a key figure in Macau's gaming landscape, Pansy Ho's decisions are seen as significant signals; her exit may affect MGM's operational strategies in Macau and its relationship with the U.S. parent, potentially impacting the dynamics of the entire gaming market.
See More
Stifel Downgrades MGM Resorts to Hold Amid Acquisition Uncertainty
- Rating Adjustment Reason: Stifel downgraded MGM Resorts (MGM) from Buy to Hold primarily due to share price volatility linked to the acquisition proposal from Barry Diller-led People Inc., with analysts citing uncertainty surrounding the transaction.
- Acquisition Proposal Analysis: People Inc. has proposed to acquire all outstanding MGM shares for $48.30 each in cash, valuing the casino operator at approximately $18 billion; however, the board has yet to confirm the completion of the deal, which could lead to privatization.
- Market Reaction: Despite the acquisition uncertainty, MGM's shares edged up 0.3% to $49.09 in Monday trading, indicating a preliminary market response to the bid, but analysts warn of potential downside risks if the deal fails.
- Future Outlook: Analyst Steven Wieczynski noted that while there is a chance for higher bids, the current share price exceeds the offer, and with a lack of internal support, there is a meaningful risk of the deal being terminated, leading to a re-rating of the stock.
See More
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- Betting Market Forecast: Analysts predict that global wagers on the 2026 World Cup could exceed $50 billion, a significant increase from over $35 billion during the 2022 tournament, indicating that the event will create substantial customer acquisition opportunities for sportsbooks.
- Operational Profit Boost: Macquarie expects the World Cup to enhance 2027 operator EBITDA by 2% to 5%, with the most significant benefits accruing to companies like Flutter Entertainment that have large soccer audiences, highlighting their competitive strength in both North America and Brazil.
- Market Maturity Deepens: The U.S. sports betting market has matured significantly, with 65% of the U.S. population now having legal access to sports betting, up from about 40% during the 2022 tournament, indicating a vast market potential.
- Rise of Prediction Platforms: Kalshi and Polymarket saw a 13% week-over-week increase in trading volume, reaching $7 billion, showcasing the rapid growth of prediction markets, which have attracted participation from companies like Fanatics and DraftKings, further diversifying the market.
See More
MGM and BetMGM Renew Multi-Year Partnerships with MLB
- Partnership Continuation: MGM Resorts and BetMGM have renewed multi-year agreements with Major League Baseball (MLB), extending their relationship that began in 2018, ensuring MGM remains MLB's exclusive integrated resort and casino partner, thereby enhancing brand visibility and market influence.
- Fan Engagement Support: Under the new agreements, MGM will continue to support fan-focused events, including the MLB Awards Week in Las Vegas, aimed at increasing fan engagement and commercializing league-related activities.
- Digital Platform Promotion: BetMGM will promote its sports betting products across MLB's media platforms, including MLB Network and MLB.com, further expanding its market reach in the U.S. and Canada, enhancing brand recognition and user engagement.
- Responsible Gaming Commitment: Both parties reaffirm their focus on responsible gaming, with BetMGM providing relevant tools and enforcing policies to protect the integrity of sporting competitions, ensuring industry credibility while expanding commercial partnerships.
See More
MGM and MLB Renew Partnership Agreements
- Partnership Renewal: MGM Resorts and BetMGM announced the renewal of their multi-year partnership with Major League Baseball (MLB), continuing their role as official gaming partners since 2018, which is expected to enhance brand visibility and customer engagement significantly.
- Marketing Initiatives: Under the renewed agreements, BetMGM will promote its brand and sports wagering offerings across MLB platforms, including MLB Network and MLB.com, which is anticipated to expand its market share in the U.S. and Canada while enhancing user experience.
- Innovation and Responsibility: BetMGM emphasizes that the partnership will drive innovation and responsible gaming, introducing the GameSense program to help customers engage in gambling responsibly, which is expected to bolster customer trust and enhance brand reputation.
- Global Expansion Strategy: MGM Resorts plans to expand its integrated resort business into new markets like Japan, and this renewal not only solidifies its position in North America but also lays the groundwork for future international expansion, reflecting its strategic vision for globalization.
See More
MGM and MLB Renew Partnership Agreement
- Partnership Continuation: MGM Resorts and BetMGM announced the renewal of their multi-year partnership with Major League Baseball (MLB), continuing as MLB's official gaming partner, which enhances their influence in the sports betting sector.
- Marketing Initiatives: Under the renewed agreement, BetMGM will continue to promote its brand and sports wagering services across MLB platforms, which is expected to further expand its market share in the U.S. and Canada, increasing user engagement.
- Enhanced Experience: MGM Resorts will continue hosting events like MLB Awards Week in Las Vegas, aiming to attract more fans by providing unique customer experiences that enhance brand loyalty.
- Responsible Gaming Commitment: MGM and BetMGM emphasize the importance of responsible gaming, launching the GameSense program to ensure customers can enjoy gaming entertainment while receiving a safe and responsible gaming experience.
See More
Pansy Ho Fully Exits MGM Resorts Stake, Raising Concerns
- Stake Sale Context: Pansy Ho sold her remaining 1.2% stake in MGM Resorts through multiple trades between May 28 and June 3, marking a reduction from her peak of 4.8% in 2016, indicating a waning confidence in the U.S. parent company.
- Market Reaction: This sale coincides with a broader trend of insider selling at MGM, leading to increased speculation about potential changes involving the company's international assets, which may undermine investor confidence in MGM's future prospects.
- Acquisition Proposal Impact: Barry Diller's People Inc. launched a non-binding cash bid to acquire the remaining stake in MGM, valuing the deal at approximately $19 billion including debt, which could further influence market perceptions and stock price volatility for MGM.
- Industry Influence: As a key figure in Macau's gaming landscape, Pansy Ho's decisions are seen as significant signals; her exit may affect MGM's operational strategies in Macau and its relationship with the U.S. parent, potentially impacting the dynamics of the entire gaming market.
See More
Stifel Downgrades MGM Resorts to Hold Amid Acquisition Uncertainty
- Rating Adjustment Reason: Stifel downgraded MGM Resorts (MGM) from Buy to Hold primarily due to share price volatility linked to the acquisition proposal from Barry Diller-led People Inc., with analysts citing uncertainty surrounding the transaction.
- Acquisition Proposal Analysis: People Inc. has proposed to acquire all outstanding MGM shares for $48.30 each in cash, valuing the casino operator at approximately $18 billion; however, the board has yet to confirm the completion of the deal, which could lead to privatization.
- Market Reaction: Despite the acquisition uncertainty, MGM's shares edged up 0.3% to $49.09 in Monday trading, indicating a preliminary market response to the bid, but analysts warn of potential downside risks if the deal fails.
- Future Outlook: Analyst Steven Wieczynski noted that while there is a chance for higher bids, the current share price exceeds the offer, and with a lack of internal support, there is a meaningful risk of the deal being terminated, leading to a re-rating of the stock.
See More
2026 FIFA World Cup Set to Become Largest Betting Event Ever
- Betting Market Forecast: Analysts predict that global wagers on the 2026 World Cup could exceed $50 billion, a significant increase from over $35 billion during the 2022 tournament, indicating that the event will create substantial customer acquisition opportunities for sportsbooks.
- Operational Profit Boost: Macquarie expects the World Cup to enhance 2027 operator EBITDA by 2% to 5%, with the most significant benefits accruing to companies like Flutter Entertainment that have large soccer audiences, highlighting their competitive strength in both North America and Brazil.
- Market Maturity Deepens: The U.S. sports betting market has matured significantly, with 65% of the U.S. population now having legal access to sports betting, up from about 40% during the 2022 tournament, indicating a vast market potential.
- Rise of Prediction Platforms: Kalshi and Polymarket saw a 13% week-over-week increase in trading volume, reaching $7 billion, showcasing the rapid growth of prediction markets, which have attracted participation from companies like Fanatics and DraftKings, further diversifying the market.
See More
