History
The Group was originally known as Circus Circus Enterprises and originated with Jay Sarno's 1968 opening of the Circus Circus as well as a Circus Circus in Reno, which opened in 1978. The group subsequently developed the Excalibur in 1990, the Luxor in 1993, and the Mandalay Bay in 1999 for which the group was renamed. The group was also a partner in the 1996 opening of the nearby Monte Carlo Resort and Casino.
The group entered into a joint venture in 1993 with Don Carano of Eldorado Hotel Casino in Reno to develop and build Reno's largest and tallest megaresort titled Silver Legacy. The $350 million hotel opened on July 28, 1995. Circus Circus Enterprises then turned Mandalay Resort Group held majority stake in that Reno resort. Today, now MGM Resorts International continues to hold majority ownership.
The Group incorporated as Circus Circus Enterprises (CCE) in 1974 to purchase Circus Circus from Sarno at a time when the casino was experiencing financial difficulties. The company went public in 1983 and traded on the New York Stock Exchange. The original majority owners of CCE were William Pennington, a former oil lease speculator, and William Bennett, a former furniture salesman and the manager of the The Mint Las Vegas casino. The Group's properties found success in the 1980s offering a Las Vegas experience to families subsequently experimented upon by its competitors. Its converted Circus Circus (originally developed for the upmarket) and later Excalibur properties offered gaming opportunities for adults and separate non-gambling games and theme-park-style experiences for underage visitors under the same roof. In 1995, William Bennett resigned from the Board of Directors, sold his stock in CCE, and bought the Sahara Hotel and Casino.
On March 20, 1995, Circus Circus Enterprises announced that it had agreed to acquire Gold Strike Resorts, a closely held budget casino owner and operator, in a deal valued at more than $600 million. At the time of the acquisition Jean, Nevada based Gold Strike Resorts owned the Gold Strike Hotel and Gambling Hall, Nevada Landing Hotel and Casino, and Railroad Pass Hotel and Casino.
On June 4, 2004, one of Mandalay Resort Group's largest competitors, MGM Mirage, announced a bid to acquire it for $68 per share plus assumption of debt. The stock closed at $60.27 per share on June 4. Although the proposal was announced after the close of trading on June 4, the volume of trading in Mandalay Resort Group stock on that day was quadruple the normal, with the stock closing at $60.27 per share. The ensuing negotiations between the two companies included at one point an announcement that the Mandalay board was rejecting the offer because of antitrust concerns. On June 15, 2004, however, both companies' boards approved a revised offer of $71 per share. The agreement called for MGM Mirage to pay $4.8 billion and to assume $2.5 billion in debt. The transaction was completed on April 26, 2005 for $7.9 billion.
Read more about this topic: Mandalay Resort Group
Famous quotes containing the word history:
“If you look at the 150 years of modern China’s history since the Opium Wars, then you can’t avoid the conclusion that the last 15 years are the best 15 years in China’s modern history.”
—J. Stapleton Roy (b. 1935)
“All things are moral. That soul, which within us is a sentiment, outside of us is a law. We feel its inspiration; out there in history we can see its fatal strength.”
—Ralph Waldo Emerson (1803–1882)
“It takes a great deal of history to produce a little literature.”
—Henry James (1843–1916)