Harrah’s Delays Plans for IPO
By Scott Carlson, Rakeback.com Senior Writer
The owners of the World Series of Poker, Harrah’s Entertainment, announced in a short press release Friday, that its “… not pursuing its initial public offering of common stock at this time due to market conditions.” Rumors on Wall Street are swirling that the IPO would not have come close to raising the amount of capital Harrah’s was looking for.
Harrah’s was looking to go public to raise capital of around $500 million – $600 million. The funds raised were to be used to reduce their $20 billion debt load, fund the development of an Ohio property and complete construction of the Octavius Tower at Caesars Las Vegas. It was also announced recently that once the shares were sold the company would be re-named Caesars Entertainment Corporation. The status of the name change is now unknown.
Harrah’s announced just one month ago their intentions of an initial public offering. It was just three years ago when Apollo Management Group, LLC and TPG Capital, LP purchased all of the outstanding shares of Harrah’s and took the company private for nearly $30 billion.
There were rumors earlier in the year that the Rio, home of the World Series of Poker, was going to be sold. The WSOP was then going to be moved to Caesar’s Palace. The rumors turned out to be just that, rumors. A review of the convention space does not look like a move of the WSOP would even be remotely possible.