Rumors were rife this week that International Game Technology (IGT), the world’s leading slot game manufacturer, is up for sale following a report that the Nevada based company had reached out to Morgan Stanley to explore the option of a sale. The report has sent the IGT stock price soaring 14.4 percent higher to $14.31 resulting in a market value of more than $3.5 billion. The company had a sharp decline this year in quarterly profits and is down in value by 31% which has promoted the search for buyers. The drop comes despite the purchase of the social company Double Down Interactive, known as Double Down Casino on Facebook.
The online gaming industry has been consolidating at a quick rate as the week also saw Amaya, backed by GSO Capital Partners, purchase Rational Group which owns the world’s largest online poker sites, PokerStars and Full Tilt. As far as who might purchase IGT, there have been several front runners being mentioned such as Novomatic who have the liquidity to purchase IGT and would give the company a stronger positioning in both US and Australia. Other contenders include lottery operator GTECH SpA and billionaire Ron Perelman’s MacAndrews & Forbes Holdings are competing to buy the Las Vegas slot machine maker, sources told Reuters.
Private equity firm Apollo Global Management LLC (APO_), a co-owner of Caesars Entertainment Corp.(CZR_), is also looking to bid. Stay tuned this week as Free Slot Money follows up on the rumors that suddenly drove up IGT’s share price.
Submit your review | |
Submit your review | |
