About MGM Resorts International
MGM Resorts International (MGM) is a Paradise, Nevada based corporation that brands itself as a global hospitality company. It is the second largest gaming company in the world by revenue - about US$6 billion in 2009. It owns and operates 15 properties in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, Illinois and Macau, China.
The company began as MGM Mirage on May 31, 2000, with the merger of MGM Grand Inc. and Mirage Resorts Inc. In the mid-2000s, growth of its non-gaming (lodging, food, retail) revenue began to outpace gaming receipts and demand for high-rise condominiums was surging, with median property prices in Las Vegas twice the national average. The company shifted its business model from fully owning and operating resorts and casinos, to being more real estate focused - launching the massive Citycenter mixed-use project. Unfortunately, the latter's development coincided with vast overbuilding on the Strip and a global financial crisis, causing large losses and writedowns in valuation.
In June 2010, the company changed to its present name, to reflect its latest strategy of expanding worldwide, including licensing its brand and expertise to develop non-gaming hotels and residences. Through 6 global offices of its subsidiary, MGM Resorts Hospitality, it has agreements to develop and manage nongaming Bellagio, MGM Grand and Skylofts hotels in countries such as Dubai, Abu Dhabi, India, Vietnam, Egypt and China by 2013.
Billionaire investor Kirk Kerkorian and his Tracinda Corporation were, until May 2009, the majority shareholders of MGM Mirage; Kerkorian was the former owner of the Metro-Goldwyn-Mayer movie studio, from which the predecessor corporation, MGM Grand Inc. derived its name. Following a one-billion-dollar stock offering by MGM Mirage amidst the global credit crutch, Tracinda's shares were diluted from 53.8 percent to 39 percent. In May 2010, hedge fund Paulson & Co acquired 40 million shares (about 9%) to become MGM Resortsâ€™s second-largest shareholder.