The timing of Galaxy Entertainment’s surprise move to acquire a 4.9% stake in Wynn Resorts suggests that Galaxy has been waiting in the wings for an opportunity to make this kind of move for a while. The two casinos are similar in their structure, style, balance, stock price movements, and are both particularly dependent on the VIP market. They are both pretty glitzy places as Macau casinos go, known for attention to detail and customer service. The only glaring difference is that one is Chinese and the other is American.

When Steve Wynn was at the helm, it would have been quite difficult for Galaxy to make a move to acquire any appreciable stake in the company. Wynn would have probably personally objected, not wanting to make it look like he was allowing “the Chinese” to “invade” another sacred space of “American capital”. Wynn was a big Trump supporter during the campaign, and Trump being the American exceptionalist Sinophobe that he is, he would not have been happy with Wynn allowing such a thing. Though Wynn is not as flamboyant as Trump in blasting a funeral dirge every time a Chinese firm acquires something American, he would have probably also been rather uncomfortable with it and would not have wanted that kind of publicity.

Well, now that we have all heard more about Steve Wynn’s alleged sorry sex life than any of us ever wanted, his opinion and Trump’s are no longer relevant. Galaxy waited for him to liquidate his stake, which he was pressured into, and then they made their move.

Wynn did not sell any of his shares to Galaxy, at least not directly. 8 million were sold to Capital Research and Management, and T. Rowe Price. Another 4.1 million were sold on the open market. The 5.3 million shares that Galaxy acquired were newly issued for a total $927 million. That’s a lot of money to use up for a casino that is actively expanding in Cotai. It’s about 40% of its cash holdings as of 2017. It may have been more if not for pesky reporting requirements above a 5% threshold. The Nevada Gaming Control Board is still examining the transaction anyway, but that’s just because they feel like it. They’re probably really bored over there.