Steve Wynn Sells off Stake in Wynn Resorts
In what will finally be the end of the story, at least regarding casino related news, Steve Wynn has completely sold off all his shares in Wynn Resorts. While his signature may sit atop the company’s hotels, the man himself is no longer affiliated with the company he founded. Up until the middle of last week, Steve Wynn remained the largest shareholder in Wynn Resorts.
Steve Wynn Sale of Shares Inevitable
Steve Wynn is credited as the man who came up with the idea of the integrated casino resort. Wynn’s decision to sell off his interest in the company comes after a large number of sexual misconduct claims were levelled against him in late January 2018. The reports came to light following a Wall Street Journal article, detailing claims that went back decades. Since the article, more women have come forward.
This forced Steve Wynn to resign as CEO of Wynn Resorts. However, he retained his 12% stake in the company, remaining the largest shareholder. At first, he was unable to sell his shares, due to a shareholder agreement with his ex-wife and an ongoing lawsuit and this put the company’s gaming licensed in jeopardy. Wynn Resorts was able to settle the court case, and this allowed the shareholder’s agreement to be dissolved. Once this happened, it was clear it was just a matter of time until Steve Wynn sold some, or all, of his shares.
Wynn Resorts Share Price Increases
At this time, it is not entirely clear who the biggest shareholder is now. Steve Wynn’s ex-wife, Elaine Wynn, is thought to now be the biggest shareholder. She was the second-biggest shareholder and owned 9.26%, with the Vanguard Group holding 8.5%. It is possible that the Vanguard Group may have increased its stake and Elaine is expected to sell some of her shares to fund charitable projects.
The markets reacted quite positively to the news that Steve Wynn had sold all his shares. Following the announcement, share prices rose 6%. This is due to regained confidence that Wynn Resort’s casinos will not lose their gaming licenses, due to Steve Wynn’s continued majority-share ownership.