One of the few successful elements of the Caesars Entertainment empire is the online social casinos the company acquired in 2011 with the purchase of Israel-based Playtika. During the company’s long slog through bankruptcy, the division was one of the most likely to be sold off.
Last week, Bloomberg reported that the Chinese conglomerate Giant Interactive Group, owned by billionaire Shi Yuzhu, is in negotiations to buy the unit, which includes such popular games as Slotomania and Bingo Blitz, along with other casino games popular on Facebook. The company is targeting a $4 billion price tag for the division.
But the purchase would not include the World Series of Poker, the popular bricks-and-mortar tournament that also has some online applications in the Caesars iGaming operations in Nevada, New Jersey and elsewhere. It’s unclear if the sale would include the cash online gaming operations.
The social games’ business of Caesars Interactive is estimated to generate EBITDA of $360 million this year, up 27 percent from last year’s total.
Caesars has granted a short window of exclusivity for the negotiations to Giant. The talks are a result of an auction for various pieces of the Caesars companies, and may not result in a sale. And even if it does, the junior creditors may object to the disbursement of any funds since it would likely benefit the top-line creditors.
