Will Caesars sell its thriving online business?

Will Caesars sell its thriving online business?

Monday, May 16, 2016 Totally Gaming
Caesars Interactive recorded a big rise in revenue in 2015

Caesars Acquisition Co is said to be considering bids of more than $4bn (€3.5bn) for its successful interactive division.

The Reuters news agency reports that Caesars sources have suggested “several bidders” have made enquiries about Caesars Interactive Entertainment (CIE), which saw revenues increase by 30 per cent year-on-year in 2015.

The sale of CIE, whose brands include World Series of Poker and fast-growing social and gaming brands like Bingo Blitz, could inject much-needed cash into Caesars Acquisition Co and its bankruptcy-threatened owner Caesars Entertainment Corp.

Reuters said that while there is no formal sale process, Caesars' has retained boutique investment bank Raine Group to help it consider the offers.

Caesars Acquisition Co is primarily a holding entity for assets such as gaming properties in the US and the interactive unit. A court-ordered examiner said Caesars Entertainment Corp and its private equity backers could be liable for up to $5.1bn in potential damages over a series of corporate deals that a led to an $18bn bankruptcy protection filing by the casino company's operating unit.

The Wall Street Journal, which first reported the story, said that bidders included financial firms, as well as gaming, media and entertainment companies.

TotallyGaming.com says: “Caesars’ interactive unit has been a success story for the struggling group, and seems to be showing its rival US gambling operators how to lead the way in social gaming. With other companies keen to buy, and Caesars seemingly requiring cash, this could be one of the deals of 2016.”

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