Caesars Said Mulling Sale of Interactive Unit for $4 Billionby
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.