WSOP for Sale...Price $4 Billion.

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05-15-2016, 01:05 AM
TheXFactor

WSOP for Sale...Price $4 Billion.

Caesars Said Mulling Sale of Interactive Unit for $4 Billion
http://www.bloomberg.com/news/articl...-for-4-billion

Quote:

Caesars Entertainment Corp., the ailing casino company, has received multiple, unsolicited bids for its interactive gaming unit, according to people with knowledge of the matter.

The bids value Caesars Interactive Entertainment at about $4 billion, said one of the people, who asked not to be identified. The company will consider the proposals, though an agreement to sell isn’t assured, they said.

Caesars Interactive is one of the largest players in the market for casino-style games on Facebook, with titles such as Slotomania and Bingo Blitz. The division, which also owns the World Series of Poker, generated $282.7 million in earnings before interest, taxes, depreciation and amortization with sales of $766.5 million last year, according to a filing.

A sale could be complicated by the bankruptcy of Caesars’ largest unit. Creditors of Caesars Entertainment Operating Co. have claimed that the interactive unit is one of the businesses transferred from them at valuation less than it was worth.

Ownership of the interactive unit is split between the parent Caesars Entertainment and a publicly traded company, Caesars Acquisition Co.
The sale process, which was reported earlier Friday by the Wall Street Journal, is being conducted by the Raine Group.

Quote:

Caesars Interactive Entertainment (with its social and mobile games, the World Series of Poker and regulated online real money gaming businesses), Planet Hollywood, Bally's and Cromwell (located in Las Vegas, Nevada), Horseshoe Baltimore, and Harrah's New Orleans.

They need to separate WSOP from the rest of Caesars Interactive assets.

Caesars Online or mobile games isn't worth shit. Not Profitable.
WSOP.com hardly worth anything. Not profitable.
Harrah's aquired the rights to the World Series of Poker from Binions Horseshoe back in 2004 for practically nothing.
WSOP makes from money by screwing over players and taking money from advertisers.

Poker Media not reporting on this because they don't give a fuck and can't stop laughing at Caesars valuation.

:no
05-15-2016, 01:09 AM
Dan Druff

It has been clarified that the WSOP and WSOP.com are not part of this.
05-15-2016, 02:03 AM
TheXFactor

Quote:

Originally Posted by Dan Druff

It has been clarified that the WSOP and WSOP.com are not part of this.

clarified by who?

WSOP and WSOP.com are a part of Caesars Interactive Entertainment.

However because of the bankrupcy fraud committed by Caesars Entertainment a sale of their assets may be impossible for now.

Caesars Entertainment considers sale of interactive unit, sources say
http://www.marketwatch.com/story/cae...say-2016-05-13

Quote:

An affiliate of Caesars Entertainment Corp., which is in danger of following its biggest unit into bankruptcy, is considering a sale of its fast-growing mobile- and social-gaming business.

Caesars CZR, -2.80% is working with investment bank Raine Group LLC to evaluate unsolicited bids for the unit that exceeded $4 billion, people familiar with the matter said. It couldn’t be learned who has made offers. There is no formal sales process, the people said, and it is possible there won’t be any deal.

Caesars Interactive Entertainment, or CIE, is one of the largest online, mobile- and social-gaming companies, with annual sales of nearly $800 million. It owns the World Series of Poker, a popular tournament held in Las Vegas every year, as well as non-gambling casino-style videogames like Bingo Blitz.

CIE has become one of the casino giant’s most important assets, notching annual revenue growth of 28.8% in the first quarter.

That could make a sale another point of contention between Caesars Entertainment and creditors of the bankrupt unit, which filed for bankruptcy protection last year.

Bondholders have criticized moves Caesars made before the filing that put CIE and other valuable assets out of their reach. They have also attacked CIE’s acquisition of World Series of Poker trademark rights. A court-appointed examiner in the bankruptcy said there is a strong chance creditors could be awarded damages in the World Series of Poker litigation. Caesars has denied that any of its prebankruptcy transactions were improper.

:denied
05-15-2016, 02:17 AM
TheXFactor

Caesars Acquisition offered over $4 billion for interactive unit: sources
http://www.reuters.com/article/us-ca...-idUSKCN0Y42NX

Quote:

Gaming holding company Caesars Acquisition Co (CACQ.O) has seen bidders offer more than $4 billion for its Interactive Entertainment Inc unit, people familiar with the matter said Friday.

The sale of the unit could inject needed cash into Caesars Acquisition Co and affiliates such as struggling casino company Caesars Entertainment Corp. (CZR.O).

The Interactive Entertainment unit houses the World Series of Poker as well as several fast-growing social and mobile gaming brands like Bingo Blitz and House of Fun. In 2015, the business, which is owned by Caesars Acquisition Co, saw its revenues increase 30 percent over the prior year.

Several bidders have approached Caesars Acquisition about potentially purchasing the unit, the people said. Even though there is no formal sale process, Caesar's has retained boutique investment bank Raine Group LLC to help it field the offers, one of the people said.

Representatives for Caesars Acquisition and Raine Group declined to comment. Caesars Entertainment Corp did not immediately return a call seeking comment.

Caesars Acquisition Co, which has a market capitalization of $1.1 billion, is primarily a holding entity for assets such as gaming properties in the United States, The World Series of Poker as well as the interactive unit.

Caesars Entertainment Corp is a 70 percent plus financial owner of Caesar's Growth Partners LLC which is in turn the holding company for Caesars Acquisition Co.

A court-ordered examiner said Caesars Entertainment Corp and its private equity backers could be on the hook for up to $5.1 billion in potential damages over a series of corporate deals that a led to an $18 billion bankruptcy protection filing by the casino company's operating unit.

The bankruptcy of Caesars Entertainment Operating Co Inc (CEOC) has pitted some of the biggest names in U.S. finance against each other in a year-long court battle.

The Wall Street Journal first reported on Friday that parties had expressed interest in the interactive unit.

Quote:

Caesars Acquisition Company (CAC) is formed to make an equity investment in Caesars Growth Partners, LLC (CGP LLC), a joint venture between CAC and Caesars Entertainment Corporation. CAC's primary asset is its membership interest in CGP LLC and does not have any operations other than through its interest in CGP LLC. CGP LLC has over two operating units: Caesars Interactive Entertainment, Inc., and Casino Properties and Developments. CGP LLC is a casino asset and entertainment company focused on acquiring and developing a portfolio of operating assets, and equity and debt investments in the gaming and interactive entertainment industries. CGP LLC's Interactive Entertainment business consists of over three units: social and mobile games, the World Series of Poker (WSOP) and regulated online real money gaming. CGP LLC's Casino Properties and Developments include Planet Hollywood, The LINQ Hotel & Casino, Bally's Las Vegas, The Cromwell, Horseshoe Baltimore and Harrah's New Orleans

:cosby
05-15-2016, 11:46 PM
ftpjesus

Holy Christ what the fuck is Ceasers smoking..20X EBITDA?? ROFLMAO wow.. somebodys on drugs.. That's nowhere near Fair Market Value... On top its roughly 5.5X actual gross.. No wonder they are in trouble..

Given their issues even 10X EBITDA would be generous.. Not sure what the point is given the whole bankruptcy issue and the courts likelihood of clawing back the spinoff attempt to devalue assets for the reorganization this is probably a dead issue and the court would never approve the sale anyway unless it was done to settle and payoff the estimated 5B they may have to eat as a result of the attempted fraud.
05-19-2016, 04:44 AM
Dan Druff

Speaking of $4 billion, that's how much Caesars has agreed to kick in to its bankrupt unit:

http://www.reviewjournal.com/busines...ankruptcy-plan
05-19-2016, 10:22 AM
Sanlmar

1 Attachment(s)

Quote:

Originally Posted by ftpjesus

Holy Christ what the fuck is Ceasers smoking..20X EBITDA?? ROFLMAO wow.. somebodys on drugs.. That's nowhere near Fair Market Value... On top its roughly 5.5X actual gross.. No wonder they are in trouble..

Given their issues even 10X EBITDA would be generous.. Not sure what the point is given the whole bankruptcy issue and the courts likelihood of clawing back the spinoff attempt to devalue assets for the reorganization this is probably a dead issue and the court would never approve the sale anyway unless it was done to settle and payoff the estimated 5B they may have to eat as a result of the attempted fraud.

The whole big casino thing is dead money. Been saying it for years. They are just rearranging deck chairs. Just went through one of the greatest stock market bubbles of all time and what has it wrought for this industry?

TheStreet did a technical analysis of WYNN chart today calling for more downside.

This is pretty.

The noise you will see in coming years will be unlocking their only worthwhile asset which is (not gambling) real estate through REIT's.

The Amazon effect will pound the big casino model into oblivion when laws finally catch up with public attitudes.

Imagine some smart operator doing national small footprint units with tight cost controls. Franchise it.

Parking fees ain't gonna save 'em.

Lol, Boston's Everett Casino. They just won't learn.
05-19-2016, 02:32 PM
Tellafriend

Quote:

Originally Posted by Sanlmar

Quote:

Originally Posted by ftpjesus

Holy Christ what the fuck is Ceasers smoking..20X EBITDA?? ROFLMAO wow.. somebodys on drugs.. That's nowhere near Fair Market Value... On top its roughly 5.5X actual gross.. No wonder they are in trouble..

Given their issues even 10X EBITDA would be generous.. Not sure what the point is given the whole bankruptcy issue and the courts likelihood of clawing back the spinoff attempt to devalue assets for the reorganization this is probably a dead issue and the court would never approve the sale anyway unless it was done to settle and payoff the estimated 5B they may have to eat as a result of the attempted fraud.

The whole big casino thing is dead money. Been saying it for years. They are just rearranging deck chairs. Just went through one of the greatest stock market bubbles of all time and what has it wrought for this industry?

TheStreet did a technical analysis of WYNN chart today calling for more downside.

This is pretty.

The noise you will see in coming years will be unlocking their only worthwhile asset which is (not gambling) real estate through REIT's.

The Amazon effect will pound the big casino model into oblivion when laws finally catch up with public attitudes.

Imagine some smart operator doing national small footprint units with tight cost controls. Franchise it.

Parking fees ain't gonna save 'em.

Lol, Boston's Everett Casino. They just won't learn.

I follow several of the big casinos. What is your take on whether Macau recovers? Also, its seems to me the smart money is in the emerging markets that are just opening up to big casino, such as the Philippines? I don't think the REIT thing saves them though. Most have too much debt for that to make a difference. Go in MGM/Bellagio/Aria on a weekend night. Its packed and most of those folks are losing money, paying for F&B, paying for their room - or at least part of it and they still can't make money after depreciation, etc. I just don't see a lot of upside for CET/MGM. I like MPEL and was in early, but obviously displeased with it as of late. Sure, no one really saw the China thing coming, but had it not, I'm not sure those degens over there would have slowed down. Gambling is just part of the culture. Dumbest of all is Packer though. What an idiot. Guess he didn't learn his first time -- which is likely b/c he never earned the $ to start with, but I digress.