MGM Resorts Buying 50% Stake in Borgata Hotel
MGM Resorts International (NYSE:MGM) is buying 50% in Atlantic City’s Borgata Hotel Casino & Spa from its partner Boyd Gaming Corporation (NYSE:BYD) for $900 million. According to the deal, MGM will sell its Borgata’s real estate to the MGM Growth Properties (MGP) real estate investment trust, for $1.175 billion in a sale-and-leaseback agreement. In a statement, MGM Resorts International’s CEO Jim Murren said that Borgata has outperformed despite of the tough market conditions. The deal is expected to be closed in the third quarter. A total of 55 hedge funds from our system were bullish on MGM Resorts International (NYSE:MGM) as of the end of March. Daniel S. Och’s OZ Management is a notable shareholder of the company among these hedge funds with more than 17 million shares.
Salesforce Acquires eCommerce Cloud Company Demandware
salesforce.com, inc. (NYSE:CRM) has announced that it is going to acquire Cloud-based eCommerce services provider Demandware Inc (NYSE:DWRE) for $2.8 billion. The deal is a bid to expand its hold on the Cloud eCommerce market as it tries to compete with giants like Oracle and SAP. In a statement, Saleforce’s CEO Marc Benioff said that Demandware is an “amazing” company which will help Salesforce to deliver the future of commerce as part of its existing platform and will also create another billion dollar Cloud business. Demandware Inc (NYSE:DWRE) skyrocketed by more than 55% after the news whereas Salesforce slipped 0.72%. As of the end of March 2016, 63 hedge funds had stakes in salesforce.com, inc. (NYSE:CRM), worth approximately $1.7 billion. Christopher Lord’s Criterion Capital owns more than 2 million shares of the company. On the other hand, Brian Ashford-Russell and Tim Woolley’s Polar Capital has 405,632 shares of Demandware Inc (NYSE:DWRE) as of the end of the first quarter. It is one of the 11 hedge funds from our system with positions in the Massachusetts based Cloud company.