WSOP big-boss Garber to oversee new operation
Caesars Entertainment Corp. said last week that it will spin off its interactive gaming business, Planet Hollywood and a planned casino in Baltimore into a separate company owned in part by the casino operator, the company’s stockholders and private equity firms Apollo and TPG.
Apollo Management and TPG Capital are expected to invest a combined $500 million in cash into Caesars Entertainment as part of the deal, which would create a “growth-oriented entity” controlled by Caesars Acquisition Co., a company created to facilitate the transaction.
Caesars Interactive CEO Mitch Garber will serve as CEO of the acquisition company and continue in his role with the interactive division, which owns the World Series of Poker.
In a statement, Caesars Entertainment, which has long-term debt of more than $20 billion, said the transaction would allow the company to fund growth opportunities in “a less levered and more flexible vehicle.”
Not exactly, but pretty much yes
The Palms Casino Resort, one of the last remaining “family run” operations on or off the Las Vegas Strip — and home to the gloriously raucous @Pokerati Game @PalmsPokerRm — will likely become part of the Caesars casino empire. The Maloof family, 80 percent owners of the Palms, sold off their majority interest this week to investors that include TPG Capital.
Across the street from the Rio ... a true palace of low-stakes NLH/PLO.
Fort Worth-based TPG, of course, are majority owners of Caesars Entertainment, corporate overlords to the WSOP.
According to the Sacramento Bee, upon approval by Nevada Gaming regulators, the billionaire Maloof family will retain just 2 percent … with an option to rebuy up to 20.
Turns out talk of TPG owning the Palms wasn't referring to The Pokerati Game after all.
Untested but presumably reliable sources say the Palms will almost certainly end up in Caesars’ portfolio of casino properties, following an acquisition path similar to how things went for Planet Hollywood … and should become part of Caesars’ Total Rewards program by year-end. Over in Sacramento, the buzz is all about what the Maloof sale means for the Sacramento Kings
, who apparently need both a new arena and a player bankroll.
I can’t begin to think I really understand the high finance and debt restructuring of Big Casinos … so before I try to explain, you should probably peruse the past six months or so of SEC filings for CZR. There really is a rather fascinating story in the agate here.