Macau concessionaire Melco Resorts & Entertainment has purchased from its parent company the entity that holds the group’s trademarks and intellectual property.
In a filing, Hong Kong-listed Melco International Development Ltd said it had reached an agreement to sell its wholly-owned subsidiary MI IP Licensing Services 1 Limited to Melco Resorts-owned MCO (IP) Holdings Limited for US$375 million. The target entity will become a wholly-owned subsidiary of Melco Resorts upon completion of the transaction, scheduled to take place on 8 May 2026.
Commenting on the transaction during Melco Resorts’ 1Q26 earnings call late Thursday, Melco Chairman and CEO Lawrence Ho confirmed the trademarks held by MI IP Licensing Services 1 Limited are those subject to the trademarks license agreement.
“These trademarks are integral to Melco’s business,” he explained. “This purchase gives us full control of the IP and allows us flexibility to expand our brand without any incremental cost.”
In announcing the transaction, Melco International revealed that MI IP Licensing Services 1 Limited had earned license fee income of US$6.0 million in FY24, rising to US$32.7 million in Fy25.
It added, “The Directors consider that the transfer of the Target Co (and thereby the trademarks) to the Melco Resorts Group will streamline and simplify the Group’s intellectual property structure by housing the Trademarks in a holding vehicle within the Melco Resorts Group, which is the principal operating platform for the Group’s leisure, gaming and entertainment businesses.
“This will facilitate more efficient management, protection and enforcement of the trademarks across multiple jurisdictions by aligning ownership with the operating entities that use the trademarks in their integrated resort operations, while allowing the company to continue to benefit from the value and development of the trademarks through its shareholding of approximately 56.32% in Melco Resorts.”
The move by Melco Resorts to acquire the Melco trademarks comes a day after MGM Resorts revealed it had earned an additional US$23 million in licensing fees from its Macau-based subsidiary, MGM China, in 1Q26 after increasing the rate it charges from 1.75% to 3.5% of revenue.
