MGM Mirage

Infobox_Company
company_name = MGM Mirage

company_type = Public (NYSE|MGM)
company_slogan =
foundation = 2000
location = Las Vegas, Nevada
key_people = J. Terrence Lanni (CEO)
James Murren (CFO)
Kirk Kerkorian (Majority Stockholder)
num_employees = over 70,000
industry = Casinos and hotels
revenue = $7.4 billion USD
products = Hotels
homepage = [http://www.mgmmirage.com/ www.mgmmirage.com]

MGM Mirage (NYSE|MGM) is a Las Vegas, Nevada-based business engaged in the development, ownership and operation of hotels and casinos throughout the world. The company began operations on May 31, 2000 after the completion of a merger of MGM Grand Inc. and Mirage Resorts, Inc. It is currently the second largest gaming company in the world. [ cite web |url=http://www.reuters.com/article/topNews/idUSN2535785320080126 |title= Fire Strikes Las Vegas Hotel-casino |accessdate=2008-01-25 |last= |first= |authorlink= |coauthors= |date=2008-01-25 |year=2008 |month= January |format= |work= |publisher= |quote= ] Billionaire Kirk Kerkorian and his Tracinda Corporation are currently the majority owners of MGM Mirage. Kerkorian was also the former owner of the Metro-Goldwyn-Mayer movie studio, from which the predecessor corporation MGM Grand, Inc. derived its name.

As of 2005, the company owns 831 acres (3.4 km²) of property on the Las Vegas Strip. Its yearly revenue is around $7.4 billion USD. The company also owns the recently completed MGM Grand Detroit, in downtown Detroit, Michigan and recently opened MGM Grand Macau in December 2007, owned and operated through a 50/50 partnership between MGM Mirage and Pansy Ho Chiu-king.

History

The company began operations on May 31, 2000 after the completion of a US$6.4 billion merger, the largest ever in the industry. At the time of the merger, MGM Mirage was the largest gambling company in the world (although it was subsequently succeeded by Harrah's Entertainment). Before the merger, MGM Grand had been in operation since the 1960s and Mirage Resorts (formerly Golden Nugget Companies, Inc.) had been in operation since the 1970s.

On January 26, 2004, MGM Mirage completed the sale of its two Golden Nugget casinos -- the Golden Nugget Las Vegas and the Golden Nugget Laughlin. The former, in downtown Las Vegas, was the first casino owned by Steve Wynn, and was the foundation on which he built the MGM Mirage predecessor corporation Mirage Resorts. The Golden Nugget properties were purchased by the Las Vegas-based private investment firm Poster Financial Group, Inc. for approximately $215 million.

On June 4, 2004, MGM Mirage announced a bid to acquire one of its major competitors, Mandalay Resort Group, for $68 per share plus assumption of debt. The ensuing negotiations between the two companies included at one point an announcement that the Mandalay board was rejecting the offer because of antitrust concerns. On June 15, 2004, however, both companies' boards approved a revised offer of $71 per share. The agreement calls for MGM Mirage to pay $4.8 billion and to assume $2.5 billion in debt. The transaction was completed on April 26, 2005 for $7.9 billion.

On June 23, 2004 MGM Mirage completed its $140 million sale of the MGM Grand Darwin to SKYCITY Entertainment Group.

Announced on November 10, 2004, "Project City Center" on the Las Vegas Strip, is a 76 acre (600,000 m²), $7 billion, project on the site of the Boardwalk Hotel and Casino and adjoining land is planned as a multi use project. It will consist of hotel, casino, condo, retail and other uses. The first elements of this project are expected to be available in 2009. [ cite web |url=http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=105&STORY=/www/story/11-10-2004/0002401563 |title= MGM MIRAGE to Develop a Dramatic Urban Environment for the New Millennium |accessdate=2007-05-30 |last= |first= |authorlink= |coauthors= |date=2004-11-10 |year=2004 |month= November |format= |work= |publisher= PRNewswire-FirstCall |quote= ]

On May 31, 2005 MGM Mirage started construction on the MGM Grand Macau.

On April 25, 2006, MGM Mirage announced with Foxwoods Resort and Casino a joint partnership in developing an expansion plan at Foxwoods that will include a casino using the MGM Grand brand. [ cite web |url=http://www.usatoday.com/travel/hotels/2006-04-25-mgm-foxwoods_x.htm |title= MGM Grand hotel will open at Foxwoods as part of partnership |accessdate=2007-05-30 |last= |first= |authorlink= |coauthors= |date=2006-04-25 |year=2006 |month= April |format= |work= USA TODAY|publisher= Associated Press |quote= ]

On October 16, 2006, MGM Mirage announced that it planned to sell the Colorado Belle Hotel & Casino and Edgewater Hotel and Casino to a partnership of Anthony Marnell III and Sher Gaming. The sale price was $200 million. [ cite web |url=http://www.casinocitytimes.com/news/article.cfm?contentID=161866 |title= MGM Mirage selling two Laughlin casinos |accessdate=2007-05-06 |last=Howard |first= Stutz |authorlink= |coauthors= |date=2006-10-17 |year=2006 |month= October |format= |work= |publisher=Las Vegas Gaming Wire |quote= ] The sale closed on June 1, 2007.

On October 31, 2006, MGM Mirage announced plans to sell Primm Valley Resorts to Herbst Gaming for $400 million. The proposed sale would not include the Primm Valley Golf Club. [cite news |first=Howard |last=Stutz |authorlink= |author= Howard Stutz |coauthors= |title=Herbst Gaming to buy Primm properties |url=http://www.reviewjournal.com/lvrj_home/2006/Nov-01-Wed-2006/business/10558956.html |format= |work=Gaming Wire |publisher=Las Vegas Review-Journal |id= |pages= |page= |date=November 1, 2006 |accessdate=2007-03-13 |language= |quote= ] The sale closed on April 10, 2007.

On April 19, 2007 the company announced that it planned to purchase a convert|7.6|acre|m2|sing=on site from Concord Wilshire Partners for $130 million and a convert|25.8|acre|m2|sing=on site from Gordon Gaming for $444 million. The two parcels give the company complete control of the southwest corner of the Sahara and Las Vegas Boulevard intersection. When combined with underused parts of the Circus Circus site, the company will have a 68 acre site for future development. The Concord site had been the proposed location for the Maxim Casino. [cite news |first=Howard |last=Stutz |authorlink= |author= Howard Stutz |coauthors= |title=MGM buys parcels for new center |url= |format= |work=Las Vegas Review-Journal |publisher= |id= |pages=A1+A8 |page= |date=April 19, 2007 |accessdate=2007-04-19 |language= |quote= ]

On August 22, 2007, Dubai World said it will buy a 9.5 percent stake in MGM for about $2.4 billion. It will also invest about $2.7 billion to acquire a 50 percent stake in MGM's CityCenter project, a $7.4 billion, 76 acre Las Vegas development of hotels, condos and retail outlets due to open in 2009. Dubai World will pay MGM Mirage an additional $100 million if the project opens on time and on budget. The investment firm will buy 14.2 million shares from MGM Mirage at $84 each, a premium of about 13 percent over Tuesday's closing price. The firm will also issue a public tender for an additional 14.2 million shares at the same price. The public tender is due to begin during the week of Aug. 27. [cite news |first= |last= |authorlink= |author= |coauthors= |title=MGM inks $5B deal with Dubai World |url=http://money.cnn.com/2007/08/22/news/international/mgm_dubai.reut/index.htm |format= |work=Reuters |publisher= |id= |pages= |page= |date=August 22, 2007 |accessdate=2007-08-22 |language= |quote= ]

MGM Mirage properties

All properties are wholly owned by MGM Mirage except where indicated.

Las Vegas, Nevada

* Bellagio Hotel/Casino
* Circus Circus
**Slots-A-Fun Casino
* CityCenter
* Excalibur
* Luxor
* Mandalay Bay
**THEhotel at Mandalay Bay
* MGM Grand Las Vegas
**The Signature at MGM Grand
* The Mirage
* Monte Carlo Hotel/Casino
* New York-New York Hotel/Casino
* Treasure Island

Elsewhere in Nevada

* Circus Circus Reno, Reno, Nevada
* Silver Legacy Resort Casino, Reno, Nevada (50% owner in partnership with Eldorado Hotel Casino)
* Railroad Pass, Henderson, Nevada
* Nevada Landing Hotel and Casino, Jean, Nevada (Closed March 20, 2007)
* Gold Strike Hotel and Gambling Hall, Jean, Nevada
* Primm Valley Golf Club (Actually just over the state line in California)
* Shadow Creek Golf Course [http://www.shadowcreek.com/] , North Las Vegas, Nevada

Other properties

* Gold Strike Resort and Casino, Tunica, Mississippi
* Grand Victoria, Elgin, Illinois
* MGM Grand Detroit, Detroit Michigan (98% owner in partnership with Partners Detroit, L.L.C.)
* Beau Rivage Hotel and Casino, Biloxi, Mississippi
* MGM Grand Atlantic City - newly announced casino to be built between Borgata and Harrahs
* Borgata Hotel/Casino and Spa, Atlantic City New Jersey (50% owner through Marina District Development Corporation, LLC)
* MGM Grand Macau, Macau, China (joint project with Pansy Ho Chio-king, opened 2007)
* MGM Grand branded casino - joint venture with the Foxwoods Resort and Casino at Foxwoods
* MGM Grand Abu Dhabi, Abu Dhabi, United Arab Emirates - a recently announced development that will be entirely non-gaming

ubsidiaries

* MGM Mirage Vacations [http://www.mgmmiragevacations.com/] , Milwaukee, Wisconsin
*MGM Mirage Hospitality [cite news |first= |last= |authorlink= |author= |coauthors= |title=MGM Mirage forms hospitality subsidiary |url= |format= |work=Las Vegas Review-Journal |publisher= |id= |page=2D |date=2007-05-30 |accessdate=2007-05-30|language= |quote= ]
**Joint venture in the United Arab Emirates
**Joint venture in the United Kingdom
**Joint venture in China

References

External links

* [http://www.mgmmiragevoice.com/pages/voice.asp Philanthropy Program]
* [http://biz.yahoo.com/ic/12/12988.html Yahoo! - MGM Mirage company profile]
* [http://www.earlyvegas.com/mgm-mirage.html History of MGM Mirage]