Wynn’s Interest In Crown’s Shares See Saws
According to information provided about the possible sale of Crown’s operations, by Crown Resorts itself, the acquisition deal could be worth about $7.15 billion, with a single Crown share valued at roughly AUS$14.75.
Crown has however stressed the fact that the acquisition process is at this point still at a preliminary stage. If Wynn were to push ahead with wanting to buy, and Crown were to decide to finally sell to Wynn Resorts and not to someone else, Wynn would have to jump the standard regulatory and due diligence hoops yet. Also, a recommendation by the Crown Board would be required, something which has not yet been granted.
Wynn Not Budging On Discussions
Wynn has practically echoed everything publically stated by Crown Resorts and has said that it refuses to issue any further comments regarding the negotiations, and that only an order by Court would prompt it to reveal any more information that what has already been provided to the public platform.
Needless to say, many questions are being asked by the media, shareholders and investors alike, as every future move will affect the value of Crown’s shares, and to some extent, even of Wynn’s own shares, especially if Wynn’s interest in acquiring Crown’s operations is viewed as a bad business decision. Which up until this point, is thankfully not considered to be the case.
All things considered, when taking into account the possible ripple-effect in the world-wide market, Wynn’s resolve not to reveal any more details about the deal is perfectly understandable.
Normal Ups And Downs For Crown
In February, Crown published figures indicating a major drop in online revenue and this was at the time put down to the fact that the operator had sold off its Crownbet brand to popular sportsbetting giant William Hill. However, the operator’s digital endeavours are but a drop in the bucket of its overall business interests. It also owns various resorts in Australia as well as a flagship resort in London.
The operator has admittedly experienced a decline in revenue across the entire scope of its operations, but this has been considered to be well within the normal limits of fluctuations.