THIS DEAL COULD BRIGHTEN THE PICTURE FOR MGM AND MGM MIRAGE

Implications: The point of this endeavor is for MGM and it's sister companies to get a financial foot up. It's could eventually end up in a very strong partnership for all concerned. When there is no end of cash reserves a strong brand company such as MGM could find themselves in some countries that others may not be able to enter. Interesting possibilities.

Analysis: There could always be some hardships with this proposed joining of companies. The Dubai Holding Company must pass Nevada Gaming prior to any meaningful relationship concerning U.S. gaming properties. This is generally a fairly long process when dealing with people from the U.S. - imagine the problems facing the commission with a Persian Gulf Country. There is no telling how long that will take even with some influence.

The MGM has a lot to gain with this marriage of sorts. It does not matter what you call these Dubai Companies it still amounts to a form of equity buy in. (not a buy out) It is very much a win/win deal for MGM as they are getting off the hook for plenty of dollars and still keeping a handy portion of the companies assets. This will certainly free them up to pursue construction of their 100 acres on the north end of this strip starting at Circus Circus and going to Sahara Avenue. I look for them to make an effort to trump their Project City Center,  now under construction on the strip. It should be the premier property and the new idea for future construction. I do look for the Boyd group to build a sensational mega resort on the old Stardust property, however, it will be hard to top City center.

There is a very special gold ring on this carousel - the very strong possibility of MGM being the prime casino company in Dubai. What a strong addition to their already top notch company. Things should have a very bright glow for both Dubai Holdings and MGM if all goes as planned. I really don't see any major flaps happening to put a damper on this very large deal..............