Carl Icahn Just Built a Stake in This Casino Giant

Legendary investor Carl Icahn has built a stake in a casino operator according to sources who spoke to CNBC.

The billionaire is building this stake in Caesars Entertainment but it is unknown what the size of his stake is. “Sources familiar with the situation” said however that it was at a level that would give the investor considerable influence in the casino operator.

Shares of Caesars were heading higher on the news, jumping as much as 5.5% this past Friday. It was a nice climb for a stock that sank over 45% in 2018. It was last November that the gaming giant’s CEO Mark Frissora said he planned resignation, which will formally take place in February.

The company hasn’t found a replacement yet but has said that it’s working “with a nationally recognized search firm” to identify a replacement.

It was in 2018 that Icahn sold his stake in Tropicana Entertainment for $1.85 billion to Gaming and Leisure Properties and Eldorado Resorts.
Icahn has yet to comment on his stake in the company.

According to Credit Suisse, Caesars has an ideal position in the Las Vegas gaming market after renovating “long-neglected” assets and focusing on creating new convention space.

Analyst Cameron McKnight initiated coverage of Caesars Entertainment with an Outperform rating and $13 price target last September.

Disclaimer: We have no position in Caesars Entertainment Corporation (NASDAQ: CZR) and have not been compensated for this article.