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Key Takeaways
- Caesars Entertainment shares jumped Friday following a report that billionaire investor Carl Icahn has taken “a sizable position” in the hotel and casino operator.
- Bloomberg said it was unclear what the size of the stake was or what Icahn might plan to do with it.
- Icahn was involved in the shake-up of Caesars Entertainment’s board and sale to Eldorado Resorts in 2019.
Shares of Caesars Entertainment (CZR) spiked Friday following a Bloomberg report that billionaire investor Carl Icahn has taken “a sizable position” in the hotel and casino operator.
Citing people familiar with the matter, Bloomberg said it was unclear what the size of the stake was or what Icahn might plan to do with it.
Icahn’s History With Caesars
The news organization noted that Icahn has a long history of investing in the gambling industry, and that he was involved with making changes at Caesars in the past. In 2019, the company announced an agreement with Icahn to appoint three members he backed to the board, with an additional caveat that allowed Icahn to pick a fourth member if a new chief executive acceptable to the new members wasn’t chosen within 45 days.
At the time, Icahn said he believed that “the best path forward for Caesars requires a thorough strategic process to sell or merge the company to further develop its already strong regional presence.” A few months later, Caesars agreed to be purchased by rival Eldorado Resorts for $17.3 billion, including debt, and the combined company retained the Caesars name.
Caesars Entertainment shares surged 11.4% to $35.47 as of 1:49 p.m. ET Friday but are down almost 25% year-to-date.