Carl Icahn Increases His Caesars Entertainment Stake to 15.53%

Billionaire, Carl Icahn, has increased his share of Caesars Entertainment ownership by completing a purchase of 15.53% of gambling titan’s stakes!

The news broke out last weekend when a filing to the Securities and Exchange Commission revealed that 104,957,363 of the business’ shares now belong to Icahn…

…which is an increase from the previously reported 9.78% disclosure.

Back With a Bang

In January, the news that Icahn, previous owner of Tropicana and Trump Taj Mahal in Atlantic City – which were sold to Eldorado and Hard Rock respectively – is returning to the world of gambling spread like wildfire.

As soon as the announcement of his purchase of Caesars stakes went public, the brand’s stock value rose 9.01%.

Icahn keeps pushing for either a full-fledged sale of the company or a merger with one of the big brands…

…as he himself pointed out: “I believe the best path forward for Caesars requires a thorough strategic process to sell or merge the company, to further develop its already strong regional presence…”

Solid Backing to His Arguments

He explains his “sell or merge” stance by remarking on the company’s stock underperforming compared to industry rivals – Caesars Entertainment shares were trading down 1.27% at $8.58 per share in New York…

…whereas this past year, their value declined by as much as 31% (partly, perhaps, due to underappreciated importance of Asian market).

Since departing CEO, Mark Frissora, is officially stepping down next month, Icahn is closely involved in planning for the next number one figure of the company.

Management Shifting

The rumor is, Icahn wishes to appoint former Tropicana Entertainment and current Affinity Gaming CEO to the chief executive officer role of the company.

Last week, he was busy naming a new board of directors’ members – Keith Cozza, Courtney Mather and James Nelson.

The trio will be replacing the three directors who have just departed and, as James Hunt who is the chairman of the board states, they will be pursuing efforts to further enhance value for all shareholders.

If the Vegas-based operator does not name the new CEO within 45 days of the trio joining the board, Icahn will have the right to name another, fourth new director.

NFL Business

The National Football League (NFL) has begun the year by naming Caesars their first-ever official sponsor in the casino industry.

The multi-year sponsorship deal will “provide exclusive betting insights and opportunities for US-bound fans,” who have been granted the opportunity to partake in legal sports betting, as more and more states regulate this vertical.|

NFL’s senior vice president for partnerships, sponsorships and consumer products, says: “We couldn’t be more excited to work with one of the world’s largest gaming and entertainment companies. Combining the NFL with Caesars’ expertise in world class entertainment will provide our fans unique experiences both here in the United States and abroad.”

Source:

“Icahn increases Caesars stake to 15.53%”, igamingbusiness.com, March 8, 2019.

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