Steve Wynn

Steve Wynn was born on January 27, 1942, in New Haven, Connecticut, and attended military prep school, then graduated from the University of Pennsylvania, and eventually took classes at Wharton Business School.

Wynn's first exposure to Las Vegas was in 1952, where his father would shoot dice at the Flamingo and Sands.

Wynn married Miss Miami Beach Elaine Paschal in 1963, and had two daughters born in 1966 and 1969.

In 1967, Wynn and his family moved to Las Vegas and bought a stake the New Frontier Hotel. Wynn worked as an executive while operating a wine and liquor importing and distribution firm in Nevada. Several other owners of the resort were being accused of mob afilliations. Wynn as well as the other owners sold the resort to Howard Hughes.

In 1972, Wynn invested his profits in Golden Nugget, Inc., and began converting the downtown hotel casino into an elegant destination resort.

Named Chairman of the Golden Nugget in 1975, he proceeded with the construction of a resort on Atlantic City's Boardwalk which Bally Entertainment for $440 million.

With the proceeds Wynn bought the Castaways from Hughes Corporation in 1987, and began building his ultimate dream, as well as the future flagship for other resorts. In 1989 The Mirage was opened. The building of this resort launched at $5 billion building boom in Las Vegas. Wynn then proceeded to change the Golden Nugget, Inc., name to Mirage Resorts.

In 1992, Wynn bought the Dunes for $75 million and imploded it on October 20, 1993.

In 1993, Wynn purchased undeveloped property next to The Mirage to open Treasure Island. Also during this year Wynn's oldest daughter was kidnapped and Wynn paid $1.45 million for her safe return. Kidnappers Ray Cuddy, and Jacob Sherwood were later caught and convicted.

On October 15, 1998, the $1.6 billion Bellagio opened replacing the Dunes.

Wynn had stated that one of his heroes was Walt Disney.

In 1995, Wynn undertook a joint venture with Circus Circus Enterprises, Inc., in agreeing to build another megaresort, and on June 21, 1996, the $344 million Monte Carlo opened.

In June of 1998, Mirage Resorts Inc., purchased the Boardwalk for $105 million along with the surrounding property including a restaurant and a shopping center. With this purchase Mirage Resorts Inc., now owns 12 acres fronting the Strip and 30 more acres behind the Boardwalk which was formerly the Dunes Golf Course.

"What I love the most about this town is the terrific opportunity it presents to those with the imaginationn and daring to build new must-see properties. Where else could you find a pyramid next to Camelot, next to the Statue of Liberty and Monte Carlo, an Italian lake next to the Roman Empire. Here this madness is okay. Any place else they'd lock you up. The best is yet to come. The next five years will see a renaissance of entertainment here." - Steve Wynn, February 1, 2000

On February 24, 2000, Kirk Kerkorian and MGM Grand Inc., conducted a $5.4 billion takeover offer to purchase Mirage Resorts, Inc. Kerkorian offered $17 per share for Mirage Resorts, either all in cash or a combination of $7 per share in cash and $10 worth of MGM stock, a bid worth about $3.28 billion. MGM would also assume Mirage Resort's $2.1 billion debt.

Just four hours after the announcement Mirage shareholders filed a class action lawsuit against Mirage, Chief Executive Steve Wynn, and six board members in the Clark County District Court to obtain the highest possible price for their stock. The plaintiffs consisted of Crandon Capital Partners, Richard Ardezzone, Janis Zvokel, Naline Yassin and J.M.M. Management.

The shareholders were worried that Mirage Resorts may not give the offer and others a fair hearing because the board members may lose their management grip should the company be sold. If Mirage Resorts is sold, the present management maybe out of a job. It is reported that MGM's offer may just be a low bid Kerkorian, and the plaintiffs are attempting to obtain the highest price.

It has been alleged that Mirage Resorts board members have breached their fiduciary duty to maximize shareholder value by wrongfully refusing to properly consider a bona fide offer, one that represents a substantial premium over the market price for the company from MGM Grand.

Mirage did not rejected MGM's offer and the proposal will be considered by the board at a future meeting.

If Kerkorian obtains Mirage Resorts, MGM Grand would to create a huge share of the high-end market. The "financial might" of MGM-Mirage, as MGM Grand President Jim Murren has called it, would make it extremely difficult for competitors to catch up.

On February 25, 2000, Wall Street analysts and Las Vegas casino observers were guessing Mirage Chairman Steve Wynn's next move. Though Wynn may begin negotiating a higher price with MGM Grand, Wall Street is buzzing with talk of new bids for the Las Vegas company including Harrah's Entertainment, (Harrah's and Rio), or Park Place Entertainment, (Flamingo Las Vegas, Bally's, Las Vegas Hilton, and Caesars Palace).

Wynn, being a Vegas long-timer and a business gambler, has some on Wall Street speculating he would take the risky move of taking Mirage Resorts private in a leveraged buyout, and that Carl Icahn, owner of the Stratosphere hotel-casino, might be willing to help him.

Harrah's is the most widely discussed competitor given the company's lack of a large presence on the Strip, and its need for a high-end portfolio. Another significant factor is Wynn's friendship with Harrah's Chief Executive Phil Satre, raising the possibility if Wynn seeks a white knight, he would approach Harrah's. Harrah's is interested in acquiring additional Las Vegas Strip capacity and has been considering an expansion at the Rio.

Park Place is seen as less of a possibility, since it is trying to digest its $3 billion purchase of Caesars World Inc. Another problem is the rivalry between Wynn and Park Place Chief Executive Arthur Goldberg. Still, analysts and observers insist Park Place cannot be totally dismissed.

Some speculate Icahn would be willing to be Wynn's partner. Icahn is licensed, so he and Steve Wynn could form an alliance. There is speculation that Icahn is using the Stratosphere to get his foot on the Strip so he could get his license and start dealing. Others downplay the Icahn possibility, saying it isn't in keeping with Icahn's reputation as a "bottom-fisher." Icahn is adding to his casino portfolio, but he's bought most out of bankruptcy, and Mirage is not a distressed corporation.

Some argue that Wynn will simply tell the world that Mirage Resorts is not for sale, as he did when Kerkorian took a stake in Wynn's company in 1999. Analyst, Joe Coccimiglio of Prudential Securities, has predicted that's probably what will happen, saying the odds of a buyout by MGM Grand are less than 25%.

Another problem is with the Strip's other major players who simply can't afford to let MGM Grand swallow Mirage Resorts. This may force the Strip's other major companies to enter the fray, should MGM Grand and Mirage Resorts begin dealing.

On March 6, 2000, it was announced that Mirage Resorts has been sold to Kirk Kerkorian/MGM Grand for $4.4 billion in cash. The assets range from Mirage's $1.60 billion Bellagio resort to the MGM Grand, the national's largest hotel. MGM also assumes $2 billion in Mirage debt. MGM executives agreed to the current deal after the stock market closed on March 3, 2000, and intensive negotiations continued through the weekend on details. The transaction must be approved by Mirage stockholders and is expected to close by the end of the year.

Steve Wynn, visionary of the Mirage, owns 23 million shares of Mirage stock or 12% of the company. The deal will bring him $483 million.

It is expected the new company will retain the MGM name. The combined companies will include 14 properties. Mirage owns the Bellagio, Boardwalk, Mirage, Treasure Island and Golden Nugget resorts in Las Vegas; the Beau Rivage in Biloxi in Mississippi, and the Golden Nugget in Laughlin, Nevada. The company also owns half interest in the Monte Carlo hotel-casino on the Strip.

On April 28, 2000, Steve Wynn bought the Desert Inn for $270 million, one of the largest available land parcels on the Strip -- land with unlimited potential for new development.

"This is the most powerful piece of real estate in Nevada, possibly in the western United States," It's an extraordinary piece of property, with the opportunity to do just about anything." - Steve Wynn

Wynn entered into an agreement with property owner Starwood Hotels & Resorts Worldwide Inc., to acquire the Desert Inn, its golf course and 32-acre vacant land parcel. Starwood expects the transaction to close by June 30. Wynn and his wife, Elaine, will be the only shareholders.

Katie Meyer, Starwood spokeswoman, said Starwood's directors formally approved Wynn's offer late on April 27, 2000, during a board meeting in Rome.

"Though we received several attractive offers for the Desert Inn, the speed and certainty of this transaction made it the most attractive for our shareholders," - Barry Sternlicht, Chairman and Chief Cxecutive of Starwood.

Most often mentioned as the land canvas for Wynn's new vision is the 32-acre land parcel at the northeast corner of the Strip and Sands Avenue. But the entire Desert Inn property, including the golf course and the hotel, spans 200 acres. Wynn isn't saying yet what his plans are for the huge land parcel or the upscale 50-year-old resort. He ticked off the property's advantages -- rights to huge amounts of water; frontage on the Strip, Paradise Road, Sands Avenue and Desert Inn Road; and easy access to both the Las Vegas Convention Center and the Sands Expo Center. Then, referring to how much he'd paid in taxes over the years, he deadpanned that he was thinking about going into farming.

"I have a brand new and revolutionary scheme. I plan to plant the land half in alfalfa, half in corn. We could get that money back as a subsidy." - Steve Wynn

Farming talk aside, gaming industry observers, analysts and business people expect big things from Wynn.

"Whatever he builds, it will be one up on the last thing he built. It's really exciting for Las Vegas to continue that legacy of creation. It's very significant for this town. It will mean a resurgence of energy and business for the north end of the Strip. It's literally a resurrection of an area that's become somewhat blighted, actually." - David Atwall - Hotel-Casino Broker

Jim Arnold, secretary-treasurer of Culinary Union Local 226, which has a contract with the Desert Inn, also applauded the news as good for labor. Wynn has warm relations with the Culinary.

"In Mr. Wynn's case, I'm very comfortable, because I know that any project he takes on, he'll do a great job. It's great for the community and especially the workers. Whatever he does, he does first class. We never want to lose good property owners like that." - Jim Arnold

"I've always found (Wynn) to be very reputable; a very fair guy who didn't cheat anybody. If I get a decent value, I'll be happy to move. To me, with all the problems we've been having, I'll be happy to get out of here. I don't know what he's going to do with the property but I'm sure it will be something spectacular. He doesn't do anything half-assed." - Frank Catania, 42 year Desert Inn neighborhood resident

Wynn was asked to compare himself with Donald Trump.

"He likes to be thought of as the owner of buildings; I like to be seen as the guy who designs and builds them. The only part I ever enjoyed was the building, the design. I've always been the design guy." - Steve Wynn

Wynn was told that one of the Mirage's stockholders, Al Devore of Chicago, had worked with Elvis Presley and coined the phrase "Elvis has left the building." Wynn replied "And tomorrow I'm leaving the building."