Cosmo Sale Rumor Dept: More Rumors!
Cosmopolitan sale rumors are like the purple panther's hipster clientele... variously moustachioed and fleeting. Monthly, a new scenario with different characters enters the public transom, so much so that we gave up making sense of any of these.
There is a cast of usual suspects include MGM Resorts International, Phil Ruffin, James Packer and/or Melco Crown Entertainment, Galaxy Entertainment, Caesars Entertainment, Penn National Gaming, Pinnacle Entertainment plus dark horse contender Alex Yemenidjian.
Apparently, someone at Bloomberg has taken the bacon, stating "Deutsche Bank is in talks with potential buyers of its Cosmopolitan resort in Las Vegas." This is roughly akin to stating that "Deutsche Bank is in talks with potential customers about opening checking accounts." They're ALWAYS talking about selling this joint to anyone who asks. Call em!
Bloomberg's tipster - who claims knowledge of the matter - says that DB's asking price is $2B and has attracted four bidders, two in the money and two dialing in low. The price tag to build Cosmopolitan was south of $4b.
This could be the sweet spot for DB to sell Cosmopolitan. Profits are up, operations are becoming streamlined, they've sorted out the players club disaster, fired up a slew of compelling entertainment venues and have been steadily ticking the punch list of opening years mistakes.
To an investors, Cosmopolitan is brand new second hand property, discounted to the hilt with a long runway of possibility rolled out and ready to rock. Operating and optimizing a business with an upward trajectory is infinitely easier than pulling one out of the weeds.
The the Bloomberg story plant is all about DB not getting their asking price and springing a leak on the sleeping giant without violating whatever rules are applicable.
Fact or fiction, my bet is on Yemenidjian being nosed out at the wire by MGM.
Big thanks to the dozen or so folks who sent me the link this morning. You know who you are!
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