Wynn Says Dialogue with Fertitta to Continue

Posted on: February 26, 2025, 04:06h. 

Last updated on: February 27, 2025, 09:43h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Comments arrive as investor has opportunity to increase stake
  • Fertitta is already the largest individual shareholder in Wynn

Wynn Resorts (NASDAQ: WYNN) said its relationship with Tilman Fertitta, the company’s largest individual shareholder, is strong and that it’s open to continuing discussions with the billionaire in the future.

Wynn Resorts lawsuit Toronto Ontario
Wynn Resorts’ Wynn and Encore Las Vegas. Operator Wynn Resorts said it’s open to dialogue with investor Tilman Fertitta. (Image: Getty)

The remarks, provided to Casino.org in a brief statement, arrived soon after the gaming company filed a Form 3 with the Securities and Exchange Commission (SEC) confirming that Fertitta has rights to acquire another 1.68 million Wynn shares by May 13 and should he exercise that option, he’d own more than 10% of the gaming company’s outstanding equity.

We enjoy a positive dialogue with Tilman Fertitta, as we do will all of our shareholders, and look forward to continuing to engage with him,” according to the Wynn statement.

The casino operator didn’t mention if the Houston Rockets owner has bought any of those 1.68 million shares this year.

Wynn Mostly Quiet on Fertitta Investment

In October 2022, it was revealed that Fertitta purchased 6.1% of Wynn stock. Since then, the gaming company hasn’t said much about his involvement.

On the company’s third-quarter earnings conference call the following month, CEO Craig Billings tipped his hat to Fertitta, acknowledging that he was buying Wynn shares at a time when the stock was “excessively cheap” and as the operator was repurchasing some shares. Other than those remarks and Wednesday’s statement, Wynn has been mostly silent on Fertitta’s investment.

Reasons for the lack of commentary vary, but could well include the fact that as of this point, Fertitta has shown inklings of activism, meaning he’s a passive investor comparable to all other Wynn shareholders. He does, however, have a track record of turning to active from passive, but has yet to give any indication that’s going to happen with Wynn.

Additionally, companies will mention that well-known investors have taken stakes in their firms — Warren Buffett being a prime example — but their typical response is that those corporations want to create value for all shareholders, famous or not.

What’s Next for Fertitta/Wynn Relationship

What comes of the Fertitta/Wynn relationship remains to be seen. If he’s added to his investment in the gaming company since the start of 2025, that won’t be made public until first-quarter 13F filings are released by the SEC 45 days (or more) after the conclusion of the current quarter.

Regarding the oft-cited takeover rumors, Wall Street is largely unified in its opinion that Fertitta isn’t angling to acquire Wynn outright, and there’s a belief that even becoming an activist investor is a taller task now that he’s US ambassador to Italy.

The prevailing wisdom is that if Fertitta pushes Wynn to do something, it would be to seek domestic expansion opportunities, which it is doing by vying for a New York City casino license.