It was announced yesterday that MGM Resorts International will buy the remaining 50 percent stake in Borgata that it didn’t already own from Boyd Gaming. This announcement had been anticipated ever since MGM regained a license to operate in Atlantic City. I think this is good news for Boyd because it will give them more financial flexibility to reduce debt and plow resources into updating their current properties and systems, especially after recently announced Las Vegas acquisitions. The real estate of Borgata will also be sold to MGM Growth Properties. Shares of MGM were flat on the open today, but shares of BYD were up more than 3% and MGP were up 2%.
ATLANTIC CITY – Boyd Gaming said Tuesday it is selling its 50 percent stake in Atlantic City’s top casino to MGM Resorts International, the company that owns the other half. It will get $900 million, plus half of any future tax settlement MGM reaches with Atlantic City.