Nov 15, 2021 - Economy & Business

Wynn Resorts craps out on its SPAC deal

A stop sign reading, "SPAC"

Illustration: Annelise Capossela/Axios

Wynn Resorts (Nasdaq: WYNN) and Austerlitz Acquisition Corp. I (NYSE: AUS), a SPAC formed by Bill Foley, terminated their $3.2 billion merger agreement for Wynn's online betting unit. No explanation was given.

Why it matters: This is the latest reminder that SPAC merger announcements don't always result in SPAC mergers, coming just days after PE-backed e-commerce platform BBQGuys called off its $963 million deal with Velocity Acquisition Corp. (Nasdaq: VELO).

The bottom line: Wynn Resorts could now be in play as a takeover target, particularly for Vegas regulars like Apollo and Blackstone. Not only because of the SPAC failure, but also because Wynn CEO Matt Maddox just resigned.

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