Yemenidjian quits MGM Mirage board to pursue gaming projects

Wednesday, June 8, 2005 | 11:16 a.m.

MGM Mirage Director Alex Yemenidjian -- a longtime lieutenant of majority shareholder Kirk Kerkorian -- has resigned from the company's board and intends to strike out on his own in the gaming industry.

Yemenidjian is the former chairman and chief executive of movie studio Metro-Goldwyn-Mayer Inc., which was recently sold to a consortium led by Sony Corp. of America.

In an interview, Yemenidjian said he wants to be an owner rather than simply an executive.

"In the next stage of my career, I prefer to be a principal," he said.

He previously served as the former president and chief operating officer of MGM Grand, the predecessor to MGM Mirage. Kerkorian brought Yemenidjian over from MGM Grand to lead his movie empire in 1999.

Yemenidjian could become a potential competitor to his former boss, who gained further influence when MGM Mirage acquired Mandalay Resort Group for $8 billion last month and created the biggest casino company in Nevada.

He has known the billionaire investor for 16 years and has been a top executive for Kerkorian for more than a decade.

Yemenidjian said he leaves MGM Mirage "with a sense of sadness, as so much of my heart and history are tied up with this company."

He wouldn't specify his plans in the gaming industry, saying there's "nothing definitive at the moment."

"I don't feel geographically constrained," he said. "I wouldn't rule out any particular opportunity."

The casino business is a natural move, he said.

"I know a little bit about the gaming industry and I feel more comfortable with it," he said. "Ever since I have been in the industry I can't remember a bad time to pursue an opportunity."

Yemenidjian will continue to serve on the board of Kerkorian's Beverly Hills-based charity, called the Lincy Foundation.

"We continue to be great friends," he said of Kerkorian.

In a statement, MGM Mirage Chairman and Chief Executive Terry Lanni said the company will "miss Alex's wealth of experience and wise counsel" but said the industry "will be stronger when he resumes his active involvement."

MGM Mirage officials wouldn't disclose Yemenidjian's future plans or could not be reached for comment by press time.

Deutsche Bank stock analyst Marc Falcone said he would expect to hear details about the executive's plans soon.

"He has been a very important part of the development of MGM Mirage over the last 10 years or so," Falcone said. "We think that he brings some very important qualities and characteristics to the gaming industry."