Wynn casino conglomerate is on the edge of falling. Although this is a bit early, there are signs, which is because Steve Wynn, the owner of the Wynn Resorts Limited has a sex scandal. These are allegations that many gaming observers are now saying they will ruin his gaming career. Is it right to say at this point that Steve’s empire will perish? There are ample reasons to say that if the allegations are true, it will be hard. Yes, it will be hard for Steve to rebuild his reputation. For now, it is tough to trust the businessman.
Will Wynn Resorts Survive Steve Wynn’s Sex Scandal Allegations?
For instance, a lot is happening since the Wall Street Journal publishes a story last week. The WSJ publishes a story where several women relate how the billionaire forces them. On the paper, Steve forces the women to have sex with them. At the moment, the valuation of Wynn Resorts stock indicates a big downfall. For instance, Wynn’s value is dropping by $3.5 billion. The stock that is $200 before the paper runs the story is now $170, 49. At least, this figure that appears on Thursday is set to shrink dismally.
What Awaits Wynn Resorts
Many analysts are now envisioning what will happen. They say that that the CEO will not continue to serve in the position. If this is what will happen, the stock will fall even further. The same analysts believe that there is the best course of action. They argue that there are chances of Wynn’s assets to be sold. The beneficiaries will be none other than his competitors.
David Katz, an analyst with the Jefferies, says on Monday. He writes that as things are, all of Steve Wynn’s assets are in limbo. He is on the brink of losing his valuable assets. “If Wynn steps aside, the best possible outcome will be a sale of the company. Everybody knows what will go. The physical assets, land value, and access to the Macau gambling business. These things will likely be attractive to other operators. Even private entities that invest in gaming will love to purchase,” David Katz says.
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Wall Street Journal Says Mere Fabrication?
The sale of his company, which he is a CEO is possible. Wynn has only 12 percent shares of the Wynn Resorts. He has an extra percent in voting interest. Even if you combine these two percentages, Steve does not have the powers to block the sale, which is putting his position in jeopardy. At the same time, his estranged wife has shares on the company. Regarding the story on the WSJ, Wynn says that the report is a mere fabrication. The billionaire claims that the story is a lie by his ex-wife. If what Wynn says is true, then it means he will not stop the sale. His former wife will work hard to see that the man does not remain with a thing.
On the other hand, if what the women are saying is true, this will be the end of Steve Wynn. But, Katz says that the actual value of Wynn casino shares is over $200 per share.