Finance Giant Blackstone buys Crown Resorts

The investment firm Blackstone has taken over the gambling company Crown Resorts. The purchase price is said to have amounted to 8.9 billion Australian Dollar, which when converted amounts to 5.6 billion Euro. The finance giant Blackstone had previously strived for a long time to acquire the casino. But why is Blackstone purchasing a gambling company which has recently made the headlines with negative news?

The negative headlines about the Australian gambling company Crown Resorts seem to have become more frequent in recent years. Among other things the company has created international furore because of a licence withdrawal and a money laundering scandal. In April 2021 we had already reported that Crown Resorts could be sold in the future. As it was announced a few weeks ago, the ink has now dried on the deal which runs into millions is now. The Blackstone Group which was founded in 1985 and which is based in New York City will take over the Australian gambling giant for the sum which when converted amounts to around 5.6 billion Euro.

Despite several scandals - Blackstone takes over Crown Resorts

The US-American investment company Blackstone takes over the Australian “Casino-Giants” Crown Resorts. The gambling company operates, among others, casinos in Perth und Melbourne. Besides this, Crown Resorts operates a gigantic Casino in Sydney. However, due to the recent money laundering scandal the Crown Casino is still closed. In summer 2021 we had reported about a money laundering scandal involving millions of money in the Crown Casino Sydney. Among other things, the licence has been suspended, as a result of this scandal. The buyer, the Blackstone Group, will also take over all the risks. The current operator has freed itself from the risks.

Who is the buyer of Crown Resorts?

Till a while ago no one knew about the Blackstone Group which is based in New York City. Meanwhile the company which was founded in 1985 was often in the public eye and was intensively scrutinised by the media. The assets which were managed by the Blackstone Group amounted to around 538 billion US-Dollar on the effective date of the 31st. March 2020. Overall, Blackstone is one of the world’s largest investors in the field of alternative investments. The financial giant holds shares in the Deutsche Telekom (4.5 % share proportion), as well as in the Allianz SE (5.3 %). Besides this, Blackstone also holds shares in the Hilton Hotels, Leica, SeaWorld and Merlin Entertainments Group, among others.

Conclusion

Despite the fact that there were several scandals surrounding Crown Resorts, the Blackstone Group has decide to take over Crown Resorts. As a consequence of the money laundering scandal, the CEO of Crown Resorts Ken Barton was among those to resign in Mach 2021. Since more than a year, the US American investment company has been endeavouring to take over the gambling concern Crown Resorts. We are excited to see whether Crown Resorts which is under new proprietors will now manage to make the headlines in a negative way less often.

Image Source: https://d1e00ek4ebabms.cloudfront.net/production/14258b0a-51ea-4054-b507-310d4a31bec4.jpg