Caesars Entertainment approaches Gamesys about takeover

[The Buzz]

Casino giant Caesars Entertainment (formerly Harrah's) has approached London-based bingo company Gamesys about a possible takeover.

The discussion was characterized by a source as an "early-stage chat, but hasn't gone anywhere." The talks are said to have taken place in the last few months, and that a figure approaching £300m would be "justified."

Don't consider this a sure bet, however. From The Guardian:

Despite the interest in Gamesys, it is understood that the private company will not sell. Shareholders are thought to be happy with the performance of the business and are not currently looking for an exit. Gamesys' most recent accounts revealed pre-tax profits of £21m on £74m of revenues in the year to the end of March 2010. The company paid out almost £29m in dividends, mostly to its founders, Noel Hayden, Andrew Dixon and Robin Tombs, who between them own two-thirds of the business.

[davenewgates]

The US group's interest in Gamesys could be an attempt to manoeuvre for position in advance of a possible lifting of the online gambling ban in America.

Ceasar's Entertainment is smart. But i do not think that the managemant takeover will be up any soon,in fact Ceasars denied it already. Gamesys is still doing well in the market and there's no reason for a turnover unless for the generous pay

[alexpratt]

I think there could be something there.....I would say watch this space

[JoeAdams]

I'm a little bit confused with this as I believe that a smoke won't come if there's no fire. But since Ceasars Entertainment is denying the fact, people doesn't know now which one to believe.

[best.hands]

I'm a little bit confused with this as I believe that a smoke won't come if there's no fire. But since Ceasars Entertainment is denying the fact, people doesn't know now which one to believe.

I see this as a strategic marketing scheme. It is like if you want attention, you better keep buzzing yourself in the public.. I think Ceasars wants the public to digest something that could catch interests, but the fact is actually not there..

[grem]

perhaps more land based companies want inside the online space.

If this does happen it will probably make a chain reaction of other land based companies to merge

[cassy]

I bet this rumor could be up to something. I agree with best.hands, this is maybe a bit of their marketing strategy scheme that is actually not worth to be done.