Sheldon Adelson’s Las Vegas Sands in talks to sell Vegas Strip properties in potential $6 billion deal

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The Las Vegas Strip is slowly awakening after a nearly 80-day slumber due to the coronavirus crisis.

USA TODAY

LAS VEGAS – Las Vegas Sands Corp. is considering selling its two hotel-casinos on The Strip, the company confirmed to the Reno Gazette Journal Monday.

Discussions have taken place, spokesman Ron Reese said in an email, but nothing has been finalized.

The $37.5 billion company owned by casino magnate Sheldon Adelson is working with an adviser to solicit interest from potential buyers, according to Bloomberg

The deal could be worth $6 billion for the Venetian and Palazzo resorts. 

News of the potential sale comes at a time when Las Vegas Strip properties are struggling to attract visitors amid a COVID-19 travel fallout.

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Following Bloomberg’s report, the company’s stock jumped more than 3%. Las Vegas Sands is expected to report third-quarter earnings on Wednesday.

‘We’re in a world of hurt’

The disappearance of conventions in the wake of COVID-19 contributed to a second-quarter loss of almost $1 billion for Las Vegas Sands.

“Las Vegas cannot perform without (the) return of these segments,” said Las Vegas Sands President and COO Rob Goldstein in a July earnings call. “It cannot make money with limited hotel occupancy.”

Las Vegas Sands reported a second-quarter loss of $985 million due to the coronavirus pandemic – down 97.1% from last year. The company recorded a net income of $1.11 billion in the second quarter of 2019.

The pandemic has essentially transformed Las Vegas from a global destination to a regional gambling hub dependent on “drive-in” business, Goldstein said.

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“We’re in a world of hurt here in terms of Las Vegas,” Goldstein said. “I’ve never felt more gloomy than I do today about what’s happening in Las Vegas.”

The company is optimistic about operations rebounding faster in Macau, China, but Goldstein said he is “pessimistic” that the convention and large group business will return to Southern Nevada before 2021.

Adelson, the 87-year-old billionaire chief executive of Las Vegas Sands Corp., said government officials must first ease occupancy restrictions before the trade show and convention industry can make a comeback.

Adelson: Wealthiest person in Nevada

With an estimated net worth of $41.4 billion, Adelson is the wealthiest person in Nevada and one of the 20 wealthiest people in America.

His Las Vegas Sands Corp. is one of the largest casino and resort companies in the world with the Venetian and Palazzo resorts on the Strip and lucrative casinos in Macau.

Adelson and his wife, Miriam, are the GOP’s most prominent financial backers. They contributed more than $123 million to conservative politicians in the 2018 election cycle – more than any other U.S. citizen.

Ed Komenda writes about Las Vegas for the Reno Gazette Journal and USA Today Network.

Read or Share this story: https://www.usatoday.com/story/money/2020/10/26/las-vegas-sands-potential-sale-venetian-palazzo-resorts-sheldon-adelson/6048874002/


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