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The new MGM Resorts International logo.
Published Tuesday, June 15, 2010 | 10:40 a.m.
Updated Tuesday, June 15, 2010 | 1:41 p.m.
Steve Wynn on the name change:
- "Mirage was a name associated with a very conservatively run and very successful company, not one with the kinds of overextended issues they face today. MGM got themselves into that, so I think that ought to be their name."
MGM Mirage received approval from shareholders to change the company name to MGM Resorts International at Tuesday's annual shareholders meeting at CityCenter. The change is effective immediately.
Company Chairman and Chief Executive Jim Murren said the name change is better aligned with the company’s current strategy to expand the brand globally.
“We believe that this change honors our rich entertainment heritage, better represents the growing global presence of our company and positions us to move forward under a united brand, strategy and common vision,” Murren said to a ballroom of shareholders Tuesday morning.
The company formed a subsidiary, MGM Mirage Hospitality, in May 2007 to explore opportunities in international markets. The subsidiary will now be known as MGM Resorts Hospitality.
MGM Grand Macau, which opened in December 2007, was the company’s first international venture. The hotel-casino is a 50-50 partnership with Pansy Ho. The casino operator is acquiring the management of hotel developments in Vietnam, Dubai and Egypt through the subsidiary. The business plan calls for MGM Resorts Hospitality to acquire the management of 42 hotels around the world in the next 10 years.
“This business model enables us to use our existing resources to extend the global presence and reputation of our world famous resorts without committing significant capital,” Murren said.
Murren unveiled a new logo for MGM Resort International at Tuesday’s meeting. Murren also reaffirmed that the Mirage is not for sale.
MGM Resorts International had asked its shareholders to allow the company to change its name to MGM Resorts International in a filing with the Securities and Exchange Commission in April.
The company, formerly known as MGM Grand Inc., changed its name to MGM Mirage in May 2000 after it acquired Steve Wynn’s Mirage Resorts, which included the Mirage, Bellagio, Treasure Island and the Beau Rivage Resort and Casino in Biloxi, Miss.
The company will continue to trade on the New York Stock Exchange under the symbol “MGM.”
MGM Resorts International Chief Financial Officer and Treasurer Dan D’Arrigo said during Tuesday’s meeting the company injected $5 billion of liquidity into its balance sheet despite current economic conditions. D’Arrigo said the company is on much firmer financial ground than it was a year ago.
“A recovery is under way but it will take a lot longer than any of us would like and won’t come without some bumps in the road,” D’Arrigo said.
According to an annual regulatory filing handed out before the meeting, the company lost $1.291 billion in 2009, or $3.41 per share, compared to a net loss of $855.3 million, or $3.06 per share, in 2008.
Net revenue fell 17 percent to $5.978 billion in 2009 from $7.208 billion in 2008. The company cited the overall economic downturn as the reason for the decline.
A new rewards club program was also announced during Tuesday’s meeting. The program will be called M Life and will roll out this summer at the company’s regional properties and later this year in Las Vegas. Murren said the company has about 60 million names in its customer database.
yeah , cause when they sell the Mirage its gonna be hard to name yourself after something you dont ownanymore....& losing 250 million a quarter on the CC debt, its comin real soon too... rotsa ruck
There is already a gaming company with a legendary name called "Resorts International". I wonder if they know about MGM's name change. Probably not considering who runs their casinos!
MRI, there is alot in a acronym, that company certainly needs a MRI.
Just another corporate step further AWAY from Las Vegas, and closer to Macau and elsewhere in the world were there is money to be made..
MGM Resorts???????????
Try
MGM debt, International
A turd by any other name....
Whatever happened to Harrah's Entertainment plans to change their name to Caesars Entertainment???
@WDM - that's a good one! Their balance sheet definitely could use an MRI.
And how much will it cost the shareholders to change the identity and use of the logo on all printed and electronic media...the return that the non-gaming properties will pay in license fees will barely cover the cost of the name change...
Don't these guys have bigger problems to worry about?
Revenue $ 5.978 billion - 2009
Operating income $ -963.876 million - 2009
Net income $ -1.292 billion - 2009
Total assets $ 22.518 billion - 2009
Total equity $ 3.870 billion - 2009
They've shaved off part of the Lion's mane - is this an illusion to all the profits that they have shaved off the company? (thank you folks - I'll be here all week)
A rose by any other name... the MGM brand is very very strong one and they are, for the most part, capable operators. They have selected their brand for a global reach with a presence on all the continents that should serve them well through 2020. Dropping the Mirage portion is obvious since selling the TI and what is going to follow within the next 24 months.
Nylamf is probably right; the Mirage will likely be sold soon. No doubt, Phil Ruffin has his checkbook pulled out and waiting!
We can only hope that Las Vegas can compete as these corporations divest themselves from this area. It was a good run... hope someone here has plan.
Mirage sale countdown begins.
Prediction: Billionaire next door to the Mirage with the hot Russian wife will own the Mirage by the end of the year. He can turn the Mirage into a real cowboy joint!
There's already a tram between the two properties. Whatta perfect fit!
Check out my blog:
http://jimmyhoofa-lv.blogspot.com/
WDM... That's a funny one. That was a good laugh!
Just when the hookers finally learn where to show up, they change the name. Figures.
@BoreUS:
I LOVE the Switzerland.
I consider Zurich to be a nice place.
UBS is a great international company to work at.
And I think it's good for every company to open itself and to become more International.
Anyway as I read recently: Hedge Funds own currently 40% of MGM Group and might sell some parts of MGM Group, e.g. wonderful Mirage International, at a an auction.
Hedge Funds are only after money.
http://www.imdb.com/title/tt0401445/
Any dude being able to count to three knows that Mirage International without the Magicians Sigfried & Roy is not longer worth what it used to be, before the couple had to quit business and stopped the show due to concerns of their health and security.
And it's a little sad to see that MGM Hedge Funds not even have the heart to sell The Bellagio at a reasonable price to a guy like Steve Wynn who has the experience and knowledge to bring it back to a classy Hotel Resort, before MGM managed to bring it down.
But it's the awful truth, BorUS, at the place where you and me have a heart, Hedge Funds only have an empty safe waiting for dead green paper bucks ...without a heartbeat.
http://www.youtube.com/watch?v=aKUxVtrEQ...
Please sell the Mirage!
I would say tear down Circus Circus and rebuild, but after the City Center debacle I guess they can not afford to. It is sad to see, but since TI has been sold out of the MGM family, service has gone up at that property.
@banana joe
mgm aren't looking to improve when presented with cash offers and turn them down. they believe they are still the best gaming company around.
@vegasvisitor
your right. they can't afford but will do everything to mislead the public that they are doing well.
How about those contractors due money? someone needs to take the lid off and start looking at the way they do business.
i hope the MGM comes out of its debt okay...it's a good company that treats its employees and patrons fairly unlike Harrah's, the biggest cheat on the strip.....HARRAH'S CHEATS!!!