Wall Street Responds To Steve Wynn's Surprising Resignation

The godfather of gaming is no more: as reported last night, in a (somewhat) surprising development, Steve Wynn, founder and CEO of Wynn Resorts, stepped down amid sex abuse allegations as he found himself "the focus of an avalanche of negative publicity."

And While Steve Wynn’s resignation as Chairman and CEO of Wynn Resorts, and his replacement with  eases concerns over whether its Macau business can get its gaming license renewal, it does bring up questions over the company’s ownership and management stability, Wall Street analysts said.

Below is a sample of analyst reactions to the Wynn news, courtesy of Bloomberg:

BERNSTEIN

  • Wait for more clarity after the news, especially possible further management change: analysts led by Vitaly Umansky
  • "Steve Wynn is WYNN (the company). Without him, the Wynn Resorts (and Wynn Macau) is a different operation":
  • Without Wynn’s leadership in the personalities, it’s questionable whether the company could keep all key management members
  • Speculation on whether Wynn Resort could be acquired will grow

MORGAN STANLEY

  • Who will be the controlling shareholder in future would be key if Steve Wynn decides to sell off his stake in Wynn Resort: analysts led by Praveen Choudhary
  • Less concerned about Wynn Macau’s gaming license renewal

BLOOMBERG INTELLIGENCE

  • Expects little immediate impact on Wynn’s Macau business: Margaret Huang
  • In Asia, most peoples’ perception of Wynn is tied to the upscale property and product, but less to Steve Wynn as a figure

JEFFERIES

  • Wynn’s resignation reduces the risk of getting license in Macau, Boston and Nevada: analysts led by David Katz

Source: Bloomberg