Caesars Entertainment Sells Playtika for 4.4 Billion

Caesar Entertainment (CE) is divesting its social gaming subsidiary, Playtika, for an impressive $4.4 billion. The acquiring entity? A syndicate partially financed by a branch of Shanghai Giant Network Technology, a prominent force in the digital gaming realm. Rumors had circulated that CE itself, estimated at roughly $4 billion, might be on the market. The Wall Street Journal indicated that gaming corporations were circling as prospective purchasers, while Bloomberg noted multiple firms had presented offers around the $4 billion threshold. The Journal emphasized CE’s mobile gaming division as a probable key element fueling the attention. This action follows CE’s announcement of a 29% surge in net income for the initial quarter of 2016, hitting $228 million. They credited this triumph to “revenue generation expansion propelled by a heightened number of monthly subscribing users” across both their social and mobile gaming platforms. It’s noteworthy that CE is retaining certain valuable holdings. Their World Series of Poker trademark and real-currency online gaming ventures are excluded from this transaction. This divestiture represents a significant shift for Playtika. Harrah’s originally acquired a 51% interest in the enterprise back in 2011 for a mere $90 million, with the prerogative to purchase the remainder within a two-year timeframe. Caesar’s Entertainment proceeded to secure the outstanding 49% later that same year, as per Globes. The agreement is anticipated to finalize sometime within the third or fourth quarter of 2016. Playtika’s headquarters will remain in Israel.

Yasuhiro Shi, the originator and head of Giant Network, commended Playtika, stating, “Their triumph is a demonstration of their gifted personnel, robust organizational ethos, sophisticated data analysis, and exceptional capacity to metamorphose and expand games.”

Mitch Garber, Chairman and CEO of CIE, reminisced about Playtika’s path since CIE’s purchase in 2011. “It’s been extraordinary to observe Playtika’s development from a modest startup with a mere 10 workers to a worldwide frontrunner in the gaming sector,” he remarked.

He further praised Playtika as a “highly lucrative and swiftly expanding enterprise with over 1,300 staff members, numerous successful games, and millions of daily engaged players.” Garber also had significant acclaim for Robert Antokol, Playtika’s creator, deeming him a “genuine visionary and pioneer in the Israeli business realm who has not only constructed a remarkable company but also one of the most distinctive cultures I have ever encountered.”

This proclamation coincided with the information that Caesars Entertainment will be unveiling its second-quarter fiscal outcomes for 2016 on Tuesday.