Will Caesars Unload the WSOP?
Caesars Entertainment Corp. could be unloading the World Series of Poker (WSOP) if the company’s stock prices continue dropping. Shares in the fabled Vegas institution have been free falling lately, losing almost 20% of its value over the course of just a week.
It’s been reported that Caesars has lost more than $240 million in Q2 thanks to reduced consumer spending and competition from newer properties like the Cosmopolitan.
Industry analysts are also expressing concerns that the house Jay Sarno built may have taken on too much with its massive, new Project Linq Las Vegas. The $550 million construction plan is designed to link up all the Ceasars properties on the Strip and will transform the gambling Mecca forever.
Companies carrying the type of debt Caesars has, as much as $19 billion, are frequently forced to spin off entities as part of a broader restructuring effort. This kind of move helps protect valuable assets from being lost completely and helps assure panicky investors that all will be fine.
The WSOP is part of Caesars’ Interactive Unit, which also runs the popular Ceasars casino app on Facebook. It’s also the the unit that would be spearheading the company’s online poker efforts in the Silver State.
So far there’s been no comment from Ceasars executives on the stock tumble or on a potential WSOP selloff.
What do you think of the Caesars free-fall? Share your thoughts in the comments section below.