Treasure Island Macau
The talk of CityCenter's failure in the VegasTripping world made me wonder how much is MGM Grand Macau worth to the company. Could MGM Grand pull the plug and walk away, pay off their CityCenter debt, and live to fight another day on their Cotai plot?
MGM Grand Macau is a private enterprise owned 50/50 between MGM and Pansy Ho (daughter of SJM's Stanley Ho). Being private, there is no clear way find its worth, but looking at the gaming revenue and stock prices of companies similarly situated (i.e. not Sands or Wynn with their projects outside Macau) can give us some gauge. Crunching the numbers you get (all figures in HK Dollars):
|Mkt Cap||Price||Shares||Price '09||Cap '09||Revenue||Multiple||% Price Chng|
From here you take MGM's gaming revenue in 2009, 10,622, times the average multiple (how much people pay for that revenue), times the average price change since December 31, 2009, and convert to US dollars, the value of MGM Grand Macau is US$1.9 Billion. MGM's half is $977 million, or about $200 million more than MGM sold Treasure Island to Phil Ruffin for.