Harrah’s Entertainment is a king in the gambling industry with 50 casinos worldwide, and the largest public to private takeover of the company could occur by the end of the year.
Apollo Management Group and Texas Pacific Grave began asking for approval of state regulators to buy Harrah’s at a proposed price of $31 billion.
In order for them to complete the sale, the groups must receive permission from at least 10 other state regulators. On Wednesday, New Jersey regulators joined the Louisiana Racing Commission and Iowa casino regulators in approving the sale.
It seems as though the two potential buyers will get the necessary approvals for the sale and because they are confident in the way things are currently being run at Harrah’s they do not plan to change a thing upon the takeover.
The long term plan calls for the prospective owners to buy the Harrah’s and then hold on to it for five to ten years before turning it over to make a profit.
“This is a huge deal to the gambling market, a deal like this sets the stage for similar companies to go from public to private ownership, which could change the landscape of the business,” said gaming expert Jack Lindquest.
Upon the merger, debt of the company will likely double, from $12.5 billion to $25 billion, but that is not a number that the new owners will be overly concerned with as they see the potential to erase that financial debt coming sooner rather than later.