Friday, June 27, 2003
Copyright © Las Vegas Review-Journal

Golden Nugget deal official

Poster Financial hopes to close $215 million deal by year's end

Tim Poster, left, and Thomas Breitling walk by the Golden Nugget on Thursday. Their Poster Financial Group announced a deal to buy the Golden Nugget Las Vegas and the Golden Nugget Laughlin for $215 million. Photo by Clint Karlsen.

The two 34-year-olds who announced their deal to buy downtown's venerable Golden Nugget said Thursday they can't wait to try their hand at running the hotel-casino.

After parlaying their Travelscape Web reservation service into tens of millions after selling to Expedia in 2000, Tim Poster and Thomas Breitling had a lot of cash and, they say, a longstanding interest in owning a Las Vegas hotel casino.

The duo appears likely to get that chance, with the opportunity to run the Golden Nugget Laughlin as well, after their Poster Financial Group officially announced a deal Thursday to buy the two properties and the Golden Nugget brand for $215 million.

The deal is subject to Nevada regulatory approval; Poster and Breitling are already working on their license applications, they said Thursday.

They hope the deal can be completed by the end of the year.

"It was always the classy joint in town," Poster said, recalling his Las Vegas childhood. "I remember the Frank Sinatra commercials where he gave Steve Wynn a toke and said `Make sure I have enough towels, kid.' "

Poster and Breitling plan to keep all of the Golden Nugget's employees, including the property's president, chief financial officer and general counsel.

"We're acquiring the Golden Nugget brand and some incredible properties, but the work force here is fantastic," Breitling said.

The two declined to say how much of their own cash they're putting into the deal, a number likely to become public during their state licensing hearings.

Although some Las Vegas casino bosses questioned why the buyers would want the 300-room Laughlin casino, Breitling said they plan to use their Internet marketing expertise to exploit synergies between the Las Vegas and Laughlin markets.

Their plan is to be at the properties as much as possible, Poster said.

MGM Mirage Chairman Terry Lanni said the sale was prompted by his company's need to best use its available resources.

"The issue is we always have to look at all our assets, and how we deploy our capital," Lanni said Thursday. "We were approached by these guys, we thought they were good people, good guys, and they intend to keep the (staff). That's important to us."

The man who made the Golden Nugget one of the city's hottest and most profitable casinos, Steve Wynn, said he was happy that the property was being sold to Poster and Breitling, calling them "smart young men," and predicting success for the two.

"It's where it started, it's where I began, it's my home," Wynn said. "What is remarkable about the Golden Nugget is how it has endured. The Golden Nugget is proof that excellence is its own reward."

At his weekly press conference Thursday, Mayor Oscar Goodman said he believes the sale bodes well for downtown redevelopment.

"We're getting people who believe in downtown. These are substantial young men," Goodman said. "It brings a new energy that assists the city with its redevelopment efforts."

The announcement came before stock markets opened Thursday. MGM Mirage shares rose 38 cents, or 1.12 percent, Thursday to close at $34.38.

Review-Journal writer Michael Squires contributed to this report.