Why MGM Stock Got Rocked Today
Most stocks had a Friday to forget, but MGM Resorts International (NYSE: MGM) endured a particularly awful trading session. The veteran casino and hotel operator's shares took a more than 7% hit on the day, which was notably worse than the 2.9% drop of the sinking S&P 500 index. Investors were clearly displeased by news of the company's latest asset divestment.
After market hours on Thursday, MGM announced that it has agreed to sell the operations of Mississippi casino Gold Strike Tunica to privately held Cherokee Nation Entertainment Gaming Holdings. The price is $450 million, which will be transacted entirely in cash.
MGM won't end up getting that full amount. The company said that after taxes and fees connected with the deal, its final take will be around $350 million.
Source Fool.com
