Icahn Enhances Influence with Caesars Board Appointments
Portfolio - People | Mar 22, 2025 | EIN
Carl Icahn, a renowned activist investor, continues to exert significant influence over Caesars Entertainment following his successful maneuverings in the company's board and merger with Eldorado. Recently, Icahn appointed Jesse Lynn and Ted Papapostolou from Icahn Enterprises to Caesars' expanded board. Icahn suggests a separation of Caesars Digital, a rapidly growing sector in Caesars' portfolio, might unlock significant shareholder value. With digital gaming peers traded at higher multiples and Caesars Digital accounting for only 3% of Caesars' total EBITDA, a spinoff could adjust the market valuation significantly. Icahn's storied history in transforming casino businesses and his confidence in Caesars' management team indicate potential for cooperative strategies ahead, amidst an evolving gaming industry landscape.
Sectors
- Gaming and Hospitality
- Digital Gaming
- Private Equity / Activist Investing
Geography
- United States – Caesars Entertainment is a major casino operator in the United States, and Icahn Enterprises is also based there.
Industry
- Gaming and Hospitality – Caesars Entertainment operates within the gaming and hospitality industry, managing casinos and hotels.
- Digital Gaming – Caesars Digital represents the company's digital gaming segment, which is showing significant growth potential.
- Private Equity / Activist Investing – Carl Icahn, through Icahn Enterprises, is engaging in activist investing, influencing firm management and strategy.
Financials
- $4.6 billion to $7.6 billion – Estimated standalone value of Caesars Digital based on projected 2025 EBITDA and a multiple range of 15 to 25 times.
- $305 million – 2025E adjusted EBITDA for Caesars Digital.
- 8.43-times EBITDA – Current trading multiple for Caesars Entertainment as a whole.
- $11.2 billion – Current annual revenue for Caesars Entertainment.
- $2.3 billion – Current operating income for Caesars Entertainment.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Carl Icahn | Activist Investor | People | A prominent activist investor engaged in value creation at Caesars Entertainment. |
| Caesars Entertainment | Target Company | Companies | An American gaming corporation and the subject of Carl Icahn's investment and strategic involvement. |
| Icahn Enterprises | Shareholder and Strategic Influencer | Companies | The investment vehicle through which Carl Icahn operates and influences Caesars Entertainment. |
| Jesse Lynn | Board Member | People | General counsel of Icahn Enterprises appointed to the board of Caesars. |
| Ted Papapostolou | Board Member | People | Chief financial officer of Icahn Enterprises appointed to the board of Caesars. |
| Ken Squire | Industry Commentator | People | Founder of 13D Monitor and commentator on shareholder activism. |