Crown Resorts is selling its 20% stake in Nobu for $180 million USD, after achieving 80% growth in the last nine 9 years.
👉 Background: Nobu is the luxury restaurant chain that was established in 1994 by celebrity chef Nobu Matsuhisa and Robert De Niro. In 2015, Crown Resorts invested $100 million USD into Nobu, and the business has since grown to 56 restaurants worldwide and 19 Nobu hotels .
👉 What happened: Now, Crown Resorts is selling its 20% stake in Nobu for $180 million USD, after achieving 80% growth in the last nine 9 years. This values Nobu's business at $1.3 billion.
👉 What else: After the numerous scandals Crown has seen, like breaches of money laundering legislation, and "unsuitable" to hold its Sydney casino license, Crown is selling its stake in Nobu to narrow its focus on its core assets.
💡Sometimes a business needs to do its own Marie-Kondo and de-clutter its business, or as they call it in the corporate world - a “strategic divestiture”.
💡After its many scandals Crown's owners are re-focusing on its core offerings. A stake in Nobu is arguably a distraction for Crown when that money could be re-invested in its main business ...especially after it lost $200 million last year.
💡And this isn't the first step that Crown has taken to clean up its act. In April, it began cutting up to 1,000 jobs across its three casinos and revamping its retail and restaurants.
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