I. Introduction
There is often confusion about who owns MGM casino, and as a result, many people are left wondering about its ownership structure. This article seeks to provide clarity and understanding of MGM’s owners and shareholders. By exploring the history of the company’s ownership, current stakeholders, financial makeup, comparative analysis, future predictions, political ties, and the role of its Board of Directors, we can gain a comprehensive appreciation of the ownership structure of this iconic casino chain.
II. The History of MGM’s Ownership
MGM, originally founded in 1924, has undergone several changes in ownership structure throughout its history. Kirk Kerkorian became a majority owner of MGM in 1969 and transformed it into a leading entertainment and gaming company. In 2000, MGM merged with Mirage Resorts, which was founded by Steve Wynn. This merger gave MGM control of several iconic Las Vegas casinos, including the Bellagio, The Mirage, and Treasure Island, among others.
III. The Current Stakeholders of MGM
Today, MGM’s primary shareholders include IAC/InteractiveCorp, which owns around 15% of the company and hedge fund Corvex Management, which owns around nine percent. The company is further owned by large investment funds like Vanguard Group, BlackRock, and State Street Corporation, each with under 10 percent ownership. Other notable shareholders include renowned billionaire investor, Carl Icahn, who owns approximately ten percent of the company, and MGM CEO, Jim Murren, who owns less than one percent.
IV. MGM’s Financial Makeup
MGM’s ownership structure greatly affects its financial makeup. The company has twice the amount of debt in its capital structure than it has equity, representing a sizable chunk of approximately $14 billion in debt. While this can make its operations more challenging, MGM has been successful in balancing its financial commitments in recent years. A strong source of revenue for MGM is its China operations—70% of the company’s earnings come from MGM China, which manages MGM Grand Macau and MGM Cotai.
V. A Comparative Analysis of MGM’s Ownership
MGM’s ownership structure is somewhat unique compared to other major casino chains. Competitor Las Vegas Sands, for example, is predominantly owned by billionaire CEO Sheldon Adelson and his family, which gives them a controlling interest in the company and significant influence over its operations. Contrastingly, MGM’s ownership structure is much more fragmented, with many large institutions hold small portions of the company’s stock. Understanding these differences helps explain how ownership can affect casino operations, management decisions, and long-term profits.
VI. The Future of MGM’s Ownership
MGM’s ownership structure is always in a state of flux, and we can anticipate significant changes moving forward. The MGM Empire City Casino in New York, for example, was recently sold to MGM Growth Properties, while the acquisition of UK gaming company Entain by MGM is currently underway. The merger could potentially give MGM more control of its online betting platform, which has been critical to the company’s recent growth. With more ownership changes on the horizon, it will be interesting to see how MGM’s financial situation and business operations evolve over time.
VII. MGM’s Political Ties
As one of the largest gaming operators globally, MGM’s ownership structure can sway politically. Political conflicts over gambling expansion, taxes, and other actor-related areas remain a prevalent part of business operations for MGM and other casinos. Members of MGM’s board of directors participate in political fundraisers and donations, trying to sway political factors in gambling legislation.
VIII. MGM’s Board of Directors
MGM’s Board of Directors plays a critical role in the company’s ownership structure, providing crucial oversight, approving large business moves and investments, and steering the company overall. The Board comprises thirteen members, including CEO Jim Murren and several independent directors with a wealth of experience in hospitality, finance, and other related industries.
IX. Conclusion
Understanding MGM’s ownership structure is key to grasping the company’s overall operations, prospects, and potential changes in the future. From the early days of Kerkorian’s leadership to the current mix of large shareholders and institutional investors, MGM’s ownership plays an integral role in the company’s operations and success. As the gaming industry continues to evolve, it will be fascinating to observe how MGM’s ownership structure and business strategies grow and change to adapt to the times.