Wynn Resorts has officially filed a disclosure with the Securities and Exchange Commission (SEC), confirming that billionaire Tilman Fertitta now owns more than 10% of the company’s shares. This move cements Fertitta as the casino giant’s largest shareholder, putting him ahead of Elaine Wynn, the ex-wife of founder Steve Wynn.
Fertitta’s Growing Influence at Wynn
Tilman Fertitta, the Houston-based mogul behind Fertitta Entertainment, Golden Nugget casinos, and the NBA’s Houston Rockets, has been steadily increasing his stake in Wynn Resorts. Just over a year ago, in October 2022, he held 6.1% of the company. By November, he had pushed that figure to 9.9%. Now, with Wynn’s latest SEC Form 3 filing, it’s confirmed—Fertitta owns a significant 10.9 million shares.
And it doesn’t stop there. He also holds rights to buy an additional 1,683,500 shares at $85.73 each, expiring in May. If exercised, his total stake would climb to approximately 12.58 million shares.
What It Means to Cross the 10% Threshold
Owning more than 10% of a company’s shares isn’t just a number—it’s a game-changer. The SEC officially classifies such investors as “business insiders.” This means added responsibilities, stricter regulations, and, most importantly, increased influence over the company’s decision-making.
- Investors who exceed 10% ownership have the power to vote on key issues, including leadership changes and board appointments.
- They are also subject to rules that prevent them from short-selling the company’s stock under Section 16 of the Securities Exchange Act.
- While some principal shareholders actively push for changes, others simply remain passive investors.
It’s unclear where Fertitta falls on this spectrum. Some analysts suggest he’s just a high-stakes investor, while others believe he has bigger plans.
Wall Street Speculation: Investor or Activist?
Wall Street has been buzzing with speculation about Fertitta’s true intentions. John DeCree, an analyst with CBRE, previously downplayed the idea of activism, stating that Fertitta appeared to be an investor rather than someone looking to shake things up.
But not everyone is convinced. Bloomberg News reported in November that Fertitta is dissatisfied with Wynn’s stock performance and management strategy. Citing unnamed sources familiar with his thinking, Bloomberg suggested that he believes Wynn is failing to properly communicate its value to investors.
The question is: Will Fertitta push for changes?
Wynn’s Undervalued Stock and Future Expansion
Some analysts argue that Wynn’s shares are trading below their true value. A major reason? Investors might be overlooking the company’s ambitious expansion plans.
Wynn Resorts is in the middle of a $5.1 billion integrated casino-resort project in the United Arab Emirates, a first-of-its-kind development on Al Marjan Island. The project, expected to open in 2027, could significantly boost the company’s global footprint.
Fertitta reportedly sees opportunities to expand the Wynn brand further, particularly in the United States. Whether this means acquiring more properties, changing management strategies, or something more drastic remains to be seen.
One thing is clear: With Fertitta now the company’s biggest shareholder, Wynn’s future could take an interesting turn.
