Crown Resorts saga surprises continuously as today a bid of $6.2 billion submitted by the Blackstone officials. For years, the overall value of Crown has decreased as it deluged into controversy continuously. This short report will be on Crown Resorts and Blackstone’s history and the details about the takeover bid.
Currently, a takeover bid seems surprising about the crown Resort saga. In Sydney, crime syndicates the related financial concern for Crown Resorts and there have numerous accusations against the Crown Resorts.
As the previous CEO of Crown resorts removed, CR is looking for a fresh start and rebranding themselves. Asides from external forces, the Crown can expect new endeavors for a positive future.
Over the last few years, Blackstone has kept a low profile. The lack of media attention became a beneficial issue for the leading global investment business.
Due to the faltering share price, Stephen A. Schwarzman (their CEO) has recognized Crown as the prospective investment strategy.
Desperate Measures Taken at Desperate Times
There comes an overwhelmingly positive response from the Crown camp. At the proposed, Wilson Assets Management Company expresses their delight as they own a share in Crown. For a suitable price to sell the company, the Australian Casino seems desperate. Their national reputation tarnished by the media coverage and heaps of controversy. Moreover, they are looking for new ownership.
For running a casino in the Sydney complex, Crown Resort lost its license last month. Five months prior, they also lost their alcohol license; in shreds, they quit the Australian business. Until these hot-pressing matters can be repaired, the potential ROI remains low. To Australian Gaming Commission, they need to appeal to do this. More likely, an appeal would be a success after the establishment of new ownership.
Crown or Blackstone, Who Benefits More?
The founder member of Crown Resorts, James Packer, sees that the company will receive huge cash from the potential takeover. He is the owner of 38 percent company’s stake and a majority shareholder of the company. He could receive up to $3.1 billion from this deal if it takes place—ten percent Crown Resort stakes held by Blackstone.