Wynn Divorce Settlement Could Split Company

(MoneyWatch)  Wynn Resorts Ltd. CEO Steve Wynn and his wife, Elaine, are divorcing after 18 years of marriage (they were married twice, so the total is more than 40 years together.) Tabloids and other news sources report that Wynn is seeing British socialite Andrea Danenza Hissom.
The divorce, if it happens, will probably end in a settlement that some legal experts say could be the biggest in the entertainment industry, eclipsing Michael Jordan's $180 million settlement to ex-wife, Juanita. Steve Wynn's worth is estimated to be more than $5 billion.
That being said, the divorce could have ramifications for the company. Elaine Wynn sits on the board and owns 24 million shares, same as Steve Wynn. (The casino operator reported $210.2 million in net income for 2008.) With shares selling at about $19.35, that means the stakes are worth about $464 million alone.

It's also unknown what effect the divorce will have on the $700 million Encore Macau set to open next year. When contacted about the matter a Wynn spokeswoman only confirmed Elaine Wynn was an active board member and that the company doesn't comment on the Wynns' personal affairs.

The Wynn divorce, it if proceeds, will be a costly one. Will it come down to Elaine Wynn allowing herself to be bought out, or will she stay on the board and overcome any differences with her ex-husband? Or will it be all-out war in the boardroom?

The settlement could also lead to a division of the company assets, with Elaine Wynn owning a few of the Wynn holdings. (If she's smart, she won't take the Encore Macau.) Either way, I think this divorce settlement -- barring any prenuptial agreements -- will take more than a year to sort out. Unless, of course, Steve Wynn decides to make amends, reconcile with his wife and save a possible $2 billion payout.

Photo of Steve Wynn courtesy of Wynn Las Vegas