Caesars Acquisition offered over $4 billion for interactive unit: sources

Gaming holding company Caesars Acquisition Co 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.

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.

– REUTERS

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