Pinnacle Entertainment to Purchase Casino Company Aztar
16 March 2006
Pinnacle Entertainment Inc., a prominent casino operator, recently announced the $2.1 billion purchase of Phoenix-based gaming company Aztar Corp., in a deal that is expected to create a nationwide land-based gaming network. The addition of Aztar’s five gaming venues will boost Pinnacle’s U.S. casino portfolio to 12 casinos in New Jersey, Nevada, Indiana, Louisiana, and Missouri. The acquisition is slated for closure towards the end of 2006.
The transaction represents a considerable change in Pinnacle's strategic moves. In 2004, company officials were reported as saying that Pinnacle prefers to grow through construction rather than acquisition. This time, however, Pinnacle has picked the acquisition route, and there is a good reason for such a move. The centerpieces of the deal are Aztar‘s Tropicana casinos in Las Vegas and Atlantic City, which are expected to provide Pinnacle with a strong presence in the two most lucrative casino markets in the U.S.
Daniel R. Lee, Pinnacle’s chairman and CEO, was reported as saying that the renovation of Tropicana’s outdated casino resort on the Las Vegas Strip will be Pinnacle's top priority. Aztar’s purchase represents the latest mega-merger in the gaming industry, hot on the heels of MGM Mirage’s $7.9 billion acquisition of Mandalay Resort Group and Harrah’s Entertainment Inc.’s $9 billion purchase of Caesars Entertainment Inc. The merger ranks Pinnacle as the sixth-biggest U.S. gaming operator.
Source: Authorized Online Casinos News Staff
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Articles
|
