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<\/a>\n <\/div>\n\n By Scott Roeben<\/a>, on May 31 2024 <\/span><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n
Multiple news outlets are reporting \u201cactivist investor\u201d Carl Icahn has acquired a \u201csizeable stake\u201d in Caesars Entertainment.<\/p>\n
We are here to report this isn\u2019t a huge deal, so chill.<\/p>\n
Yes, Carl Icahn has acquired some Caesars Entertainment stock, but what other news outlets haven\u2019t said is: \u201cHow much Caesars Entertainment stock did Carl Icahn buy?\u201d We\u2019re totally going to make you wait until after today\u2019s awkward A.I.-generated image to find out the answer.<\/p>\n According to sources with intimate knowledge of the situation, Carl Icahn purchased about a 2-3% stake in Caesars Entertainment.<\/p>\n Expected something more dramatic? As we tell our lovers, learn to live with disappointment.<\/p>\n Specifics of the stock purchase won\u2019t be publicly available until early August 2024. Had Icahn bought a 5% or more piece of Caesars, it would\u2019ve been reported immediately. Since that\u2019s not the case, it\u2019s quarterly. We are a noted understander of stocks and equity securities and Schedule 13D requirements and the such.<\/p>\n For laypersons like you and us, 2-3% of a multibillion-dollar company seems like a lot. For Carl Icahn, this stock purchase could\u2019ve been made with the money found under his couch cushions.<\/p>\n The minor freak-out, of course, was driven by the fact Icahn has been a little cagey about how much stock he bought, as well as his history of activism.<\/p>\n Activist investors tend to throw their weight around more than the typical investor. They can pressure corporate boards to make decisions they feel will benefit stock value.<\/p>\n Back in 2018 and 2019, Tilman Fertitta (owner of Golden Nugget and Landry\u2019s) proposed a merger with Caesars<\/a>, but it was rejected. Eldorado Resorts entered the picture, and Icahn was pivotal in pushing that merger through because he owned a 9.78% stake (a far cry from the 2-3% he owns now) in Caesars.<\/p>\n Why doesn\u2019t anyone ever talk about \u201cclose cries.\u201d They\u2019re always far. We can\u2019t solve all the world\u2019s mysteries on this blog, so moving on.<\/p>\n It\u2019s sort of like how Elain Wynn gets her way at Wynn Resorts because she owns a 9% stake in the company. We were the first to share<\/a> the rumor Blackstone could acquire her stock. (Wynn has been mum on the rumor, which we take to be a confirmation.) As with Caesars, Wynn\u2019s stock is undervalued, hence the interest from investors.<\/p>\n As mentioned, some of the freak-out about Carl Icahn buying up Caesars Entertainment stock is related to whether the purchase means he\u2019s looking to shake things up, but it\u2019s clear he has no interest in doing that, at least not yet.<\/p>\n He has said, \u201cI would never do activism in Caesars.\u201d Never say never, but that\u2019s a pretty strong indication Icahn just thinks Caesars Entertainment\u2019s management is solid, aside from the questionable judgment exhibited by continuing to open Bobby\u2019s Burger locations at its casinos (nobody\u2019s perfect), and Icahn thinks the stock isn\u2019t priced correctly.<\/p>\n What happens when someone with Carl Icahn\u2019s financial girth lets it be known they\u2019re making a substantial investment in a company? The stock rises. Caesars Entertainment\u2019s stock price went up about 15% after his buy was widely reported.<\/p>\n Caesars stock has been down close to 25% in 2024, but it\u2019s on the rise again following the chatter about Icahn getting back into the game again.<\/p>\n So, it\u2019s all much ado about not much.<\/p>\n Caesars Entertainment CEO Tom Reeg and Carl Icahn have a long history of working together (going back to a $1.8 billion deal in 2018 involving Tropicana Entertainment<\/a>), and Icahn seems to have a high degree of confidence in the direction of the company.<\/p>\n None of the usual asset sales, restructuring or management changes for which Icahn is known are anticipated.<\/p>\n The Vegas hot streak can\u2019t last forever, but casinos continue to rake in revenue and there have been rumblings Caesars Entertainment could do some buybacks, a concept we barely understand, even with A.I. spoon-feeding us the definition.<\/p>\n Let\u2019s just say Caesars has been aggressively trying to lower its $12 billion in debt.<\/p>\n Yes, the business side of Las Vegas is the most boring part of Las Vegas, other than the Healthy & Innovative Food Ingredients trade show, Oct. 28 through Nov. 1, 2024 at Mandalay Bay. Still, we love scoop, so suck it Bloomberg News, CNBC and Reuters.<\/p>\n It\u2019s our town, everyone else is just borrowing it.<\/p>\n<\/p><\/div>\n![\"\"](\"https:\/\/www.casino.org\/vitalvegas\/wp-content\/uploads\/2024\/05\/caesar_overlooks_empire-845x563.jpg\"\/)
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