The Wall Street Journal points out that MGM is in full meltdown mode.
MGM Mirage reported third-quarter net income fell 67% and said it was suspending plans to build new casino properties in Las Vegas and Atlantic City because of the credit crunch.
Predevelopment work has been done on the MGM Grand Atlantic City, but the company will halt development until the economy and capital markets "are sufficiently improved," said Chairman and Chief Executive Terry Lanni.
We sort of thought that when Kirk Kerkorian said he was packing up his automotive (ahem) bet in order to focus on MGM (he's the largest shareholder) it was just a cover story to save face. Well, maybe MGM really was in need of the Kirk's full attention after all.
It is not a good time for mega-resorts (Kirk is the King thereof). Gas prices alone make Las Vegas an even more annoying destination than usual.
Our crankiness about Kirk aside, we are rooting for him. If he prevails it would sort of be like your grandfather (or great grandfather, perhaps) taking over RJR.
MGM Mirage Suspends Casino Projects as Profit Falls [The Wall Street Journal]