Wynn Resorts casino deal gets axed after details leak
Australian gambling giant Crown Resorts logo. Photo: William West/AFP/Getty Images
Wynn Resorts offered to buy Australian casino operator Crown Resorts for $7.1 billion, or $14.75 per share (26% premium to yesterday's closing price). Then, within the past hour, it said it was terminating talks because deal details leaked.
Why it matters: Wynn Resorts has been on the ropes since last year's ouster of founder Steve Wynn over sexual assault allegations, and buying Crown could help it become too large to digest for acquisitive Las Vegas rivals. Plus, it reflects a weakening gaming market in Macau, which is currently Wynn's only Asia location.
My thought bubble: If the deal made strategic sense for Wynn before the talks leaked, then it still makes strategic sense one day later. And Crown has been under its own pressures, so don't be surprised if Wynn's pullback is only temporary.