Caesars Entertainment Adds Two New Directors as Icahn Eyes Digital Deal
Caesars Entertainment is adding two new independent directors to its board with immediate effect. Jesse Lynn, General Counsel at Icahn Enterprises, and Ted Papapostolou, Chief Financial Officer at the same firm, are stepping in, bringing the board to 12 members. 10 of them independent.
New Faces, Big Backing
The addition of Lynn and Papapostolou is a signal. CEO Tom Reeg welcomed them with open arms, saying, “[I] would like to welcome Jesse and Ted to the Board. Jesse and Ted bring diverse and relevant experience that will assist the Board in maximizing value for all shareholders.”
Their day jobs at Icahn Enterprises keep them in the independent camp, but their arrival amps up Icahn’s influence. The billionaire, who pushed the 2020 merger with Eldorado Resorts and recently snapped up a chunk of Caesars stock, isn’t shy about his goals.
“I have great respect for Tom Reeg and the senior management team and what they have accomplished since the merger in 2020,” Icahn said. “We look forward to working with Tom and the Board to maximize value for all shareholders, including by exploring strategic alternatives for the Company’s underappreciated digital business.”
That last bit’s the kicker here. Caesars Digital, home to its online betting and gaming arm, might be on the table for a sale or shake-up. Icahn’s calling it “underappreciated,” and with his track record, that’s code for “let’s cash in.”
A Board Ready to Deal
With 12 directors now in play, Caesars is stacking its deck for strategic moves. Lynn and Papapostolou will weigh in on everything from planning and compliance to risk and finance, standard board fare with a twist of Icahn’s playbook.
The company inked a deal with Icahn Group, complete with standstill clauses and voting commitments, locking in some ground rules. Full details are headed to an SEC 8-K filing soon.
This isn’t Icahn’s first rodeo with Caesars. He’s been a power player since the Eldorado deal turned the company into a $17 billion behemoth.
Now, with his lieutenants on the board, the push for shareholder value is getting louder. As pointed out by Next.io, Reeg’s on the same wavelength, hinting at flexibility during a Q4 earnings call:
“We are not married to any of our assets, any of our markets. If we can drive value through sale transactions, we’ll look at those as well.” He noted a recent uptick in inquiries about potential asset sales. Nothing firm yet, but a shift from years of radio silence.
What’s on the Horizon?
The digital business is the hot topic. Caesars Sportsbook and its online casino platforms have been grinding out growth: $1.2 billion in digital revenue in 2024, per last quarter’s earnings, but Icahn’s eyeing a bigger payout.
A sale, spinoff, or partnership could unlock value Wall Street’s sleeping on, especially with sports betting handles hitting $11 billion nationwide in January 2025 alone. Reeg’s open-door policy on M&A only fuels the speculation: “Since fourth quarter, we’ve seen an increase in incoming calls… That’s a step in the right direction.”
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