Report: Caesars Considering Sale of Caesars Interactive Entertainment for Estimated $4B
According to reports, Caesars Entertainment Corp. is considering the sale of Caesars Interactive Entertainment (CIE) after receiving multiple unsolicited bids to acquire its division.
BloombergTechnologies reported that an insider that wished not to be identified valued a potential acquisition at approximately $4 billion. Caesars appears to be taking the bids seriously, with the Wall Street Journal reporting that they have hired investment banking firm Raine Group to help evaluate the proposals.
CIE is attractive as one of the industry leaders in social media casino games, with popular titles including Slotomania and Bingo Blitz. CIE also owns the company which operates its real-money regulated online gaming platforms in Nevada and New Jersey. However, the division will be best known among poker players due to it also owning the most prestigious live poker festival, the World Series of Poker. Reports said that the sale would not include the WSOP and internet gaming operations, though, just the mobile and social platforms.
Although CIE has been successful with $766.5 million in revenue and $282.7 million in EBITDA, the company's operating division has gone through well-documented struggles, including a current battle which could result in up to $5.1 billion in damages with its creditors due to issues surrounding its bankruptcy filing.
The main issue at hand with the dispute are claims of Caesars conducting numerous deals without the permission of its creditors before declaring bankruptcy. In March, court-ordered examiner Richard Davis published a report after completing a year-long investigation that claimed there is a 50-percent chance Caesars could be held liable. Caesars offered $1.5 billion to the creditors in hopes to resolve the issues.
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