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Mergers and Acquisitions
Las Vegas Gaming Wire – The $1.3 billion merger between Boyd
Gaming Corp. and Coast Casinos is likely to help jump-start
redevelopment of the Stardust as a world-class resort and stabilize the
locals casino market in Las Vegas, Wall Street analysts and industry
experts said Monday.
Goldman Sachs analyst Steve Kent called the transaction a
"transforming" event for Boyd that will position the company to take
advantage of future growth opportunities.
Joe Greff, gaming analyst at Fulcrum Global Partners, an independent
Wall Street investment research firm, said a key to the deal is that it
will help Boyd raise money to redevelop the 50-acre Stardust site
without having to seek a partner.
University of Nevada, Las Vegas professor and casino industry expert
Bill Thompson said the deal is being driven mainly by Wall Street and
will prove good for Las Vegas because it will boost financing for local
"This will be good if their endgame is more development on the Strip.
That’ll do something for the local economy even though locals casinos
won’t," he said.
The merger, announced Monday, should help Boyd attract investors by
improving the company’s profile and enabling the fund-raising needed to
build a resort on the 50-acre Stardust site that can compete with Wynn
Las Vegas and the new resort planned at The Venetian, Wall Street
Boyd Gaming President Don Snyder said the transformed company will
"move forward in a broader way than it has in the past" and will develop
"much more exciting plans for the Stardust property" than it could have
on its own.
Snyder added that the size of companies matters to Wall Street and
that debt markets, for now, are looking very favorably on the gaming
industry in general and project financing in particular.
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2004 Online Casino News Archive