The financial ties between MGM Resorts International and its late founder Kirk Kerkorian have ended.
The casino giant said Monday that Tracinda Corp., Kerkorian’s privately held holding company, has sold its remaining shares of MGM, a divestiture planned following the 98-year-old billionaire’s death in June 2015.
According to a filing with Securities Exchange Commission in March 2018, Las Vegas-based Tracinda owned approximately 27.2 million shares of MGM Resorts, or 4.8% of the company. Because Tracinda’s stake was below a 5% ownership threshold, additional SEC filings were no longer required.
Kerkorian played a paramount role in shaping the Las Vegas Strip into a world class destination. He built, bought and sold some of the city’s most famous casinos. Three times he developed the world’s largest hotel-casino-resort from the ground up.
Kerkorian, through his will, instructed Tracinda – which is controlled by his two daughters – to dispose of his shares in MGM in an orderly fashion. At the time of his death, Tracinda was MGM’s largest shareholder with a 16.2% stake.
MGM Resorts Chairman and CEO Jim Murren said in a statement the last of the stock sale marked “the end of an era” for the gaming company. He called Kerkorian “one of the most visionary, selfless and compassionate leaders of his time.”
Kerkorian, in 2011, stepped down from his board position with MGM. At the time, he held a 27% stake through Tracinda.
“In an industry with a history of flash and big egos, Mr. Kerkorian’s example of leading with vision, humility and compassion is truly inspiring and serves as a driving force behind everything we do,” Murren said.
Kerkorian founded MGM Resorts in the 1990s. It was the second time he brought the name MGM to the Strip. Over the years, Kerkorian reduced his majority stake in the company. By 2009, his shares had shrunk from 54% to 37%. Still, Kerkorian was legendary for his maneuvers that often moved the needle on the value of MGM Resorts.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
