What a bounce today! Caesars Entertainment (NASDAQ:CZR) stock quickly soared 17% after a report that billionaire activist investor Carl Icahn has taken a stake.
Icahn has a sizeable stake in Caesars (CZR), according to a Bloomberg report on Friday, which cited people familiar with the matter. The exact size of the stake and Icahn’s intentions weren’t immediately known.
Caesars (CZR) didn’t immediately respond to Seeking Alpha email request for comment.
Caesars (CZR) casino peers Las Vegas Sands (LVS) and MGM Resorts (MGM) also moved in the wake of the Icahn news. LVS rose 1.3%, while MGM gained 2.8%. Wynn Resorts (WYNN) advanced 1.6%.
Caesars (CZR) is not at all new to Icahn. The activist in 2019 was pushing for the casino company to sell itself. Icahn owned a 10% stake in the company at the time. In March 2019, Caesars struck a deal with Icahn to add some of his nominees to the board. Amid Icahn’s sale push, Caesars agreed to an $8.6 billion merger with Eldorado Resorts the same year.
Caesars (CZR) had debt of $25 billion as of the end of Q1. Short interest is 7.7% of its free float.