Caesars Playing 3 Card Monty With Planet Hollywood and WSOP
Earlier this week Caesars Entertainment announced that they would be spinning off some of their assets into a new partnership called Caesars Growth Partners LLC.
The venture, Caesars Growth Partners LLC, intends to buy a stake in Planet Hollywood Resort & Casino in Las Vegas and interests in the Horseshoe Baltimore casino project currently under development, according to a statement today. Apollo Global Management LLC and TPG Capital plan to invest $500 million in the entity, combining the new investment with well-performing holdings in a structure less constrained by debt. Caesars said it expects to own a stake of at least 57 percent in the venture’s earnings.
Caesars Entertainment is selling part of Planet Hollywood, Horseshoe Baltimore and their interactive division, which includes the World Series of Poker, to itself and it’s finance partners.
That sounds a little shady but I really don’t understand how this is supposed to work. Stiffs and Georges dissects the venture and it seems like there’s a ball (debt) under a cup and Caesars is doing a magic trick that nobody will ever win.
This venture seems like it’s being done to make Caesars Entertainment a stronger company. On the surface this just seems like shuffling money around and that it won’t affect any of the businesses. Motley Fool breaks down how this will affect CZR (Not CET) the stock.
I think this game will continue for a while and there’s really nothing to see here. I’m curious to see how this all works out for Caesars and what, if anything, it means for the future of Planet Hollywood and the World Series of Poker.
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