Caesars Entertainment Considering Selling Off Interactive Division
Casino giant Caesars Entertainment Corp. has been under fire for its creative asset juggling in light of their well-documented bankruptcy proceedings.
Creditors have been critical of the evasive moves by Caesars Entertainment who conveniently separated their better performing assets like their interactive business in 2013 to create a unit called Caesars Growth Partners which is controlled by Caesars Acquisition.
To make things even more confusing Caesars Entertainment owns a majority share in Caesars Growth Partners who in turns owns Caesars Interactive but do not have voting control in Caesars Interactive.
In order to avoid bankruptcy Caesars Entertainment Corp. is reportedly considering selling its Interactive division which is without a doubt one of its best performing assets. The talk is they are working with the Raine Group LLC and are considering bids that have exceed $4 billion. Sone of the potential buyers include media and entertainment firms and also financial firms.
Caesars Interactive boss Mitch Garber was not showing his cards and said,” There is no formal sales process, and it is possible there won’t be any deal. We want to hear what people have to say, for sure.”
The success of Caesars Interactive is due mainly to their social gaming success through Playtika who have annual sales of $800m. Their growth has been phenomenal and already have recorded a 28.8% increase year-on-year in Q1. It is hard to believe that Caesars made an investment of $100m in 2011 to purchase social casino developer Playtika what at the time was seen as a lot of money.