Developing Story: The participants make it sound like a movie plot, but the Blackstone Group has bought the habitually for sale Cosmopolitan of Las Vegas from habitually unhappy owner Deutsche Bank for $1.73 billion. According to the New York Times, the deal was completed in cash for extra dramatic effect. Local rumor famously joshed that a "for sale" sign hung outside the Cosmo from the very day it opened. The resort debuted on Dec. 15, 2010, following a $3.9 billion investment. It has never made a single dollar in profit.
Self-described as as "private equity, investment banking, alternative asset management and financial services corporation" with a specialty in "apartment complexes, office properties and shopping centers," the Blackstone Group has never operated a casino before. It is, however, no stranger to Las Vegas, having bought the 68-acre, Hughes Center in August last year for $350 million.
Regulatory approval for their gaming license will be next on the docket and it should take a while to determine if the takeover will have any impact on the stellar dining and nightclub component of the resort that have consistently proven the Cosmo's crown jewels.
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