Harrah’s IPO on the horizon

Harrah’s Entertainment plans to go public again, but not for a few years. This isn’t really a surprise, but the timeline is noteworthy, as are the “developments” that the company awaits. From Reuters:

Harrah's Entertainment, which was taken private by TPG and Apollo Management in January 2008, could launch an initial public offering five to seven years from that buyout, Chief Executive Gary Loveman said on Monday.Speaking at the Reuters Travel and Leisure Summit in New York, Loveman said the 2013 to 2015 timeline is speculation on his part, adding there have been no talks with TPG and Apollo on an exit timeline yet.The two private equity firms bought the hotel/casino company for $31 billion in 2008.Loveman said Harrah's would gradually work its way back to a more public position, as opposed to doing it in “one fell swoop.” He added that the company would wait for a few developments, including an economic recovery and the legalization of online poker, before going public.

via Harrah’s could do IPO in 2013-2015, says CEO | Reuters.

This is generally the plan with private equity investments–they take a company private, spin off under-performing assets or otherwise increase the company’s profitability (or, at the very least, the perception thereof) and then roll out another IPO.

It’s interesting that the IPO is apparently contingent on the legalization of online poker, which speaks volumes to how much Harrah’s believes online poker will help the company. Whether that’s an accurate assessment of the eventual market remains to be seen. It’s also interesting that while a general economic recovery is predicted, there’s nothing–at least at this distance–about the recovery of the Las Vegas market and the development of the under-used Strip and adjacent properties.

Spread the love