{"id":289712,"date":"2023-09-14T16:23:13","date_gmt":"2023-09-14T21:23:13","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=289712"},"modified":"2023-09-15T11:48:45","modified_gmt":"2023-09-15T16:48:45","slug":"igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit\/","title":{"rendered":"IGT Stock Surges on Rumor Apollo Mulling Bid for Gaming Unit"},"content":{"rendered":"

International Game Technology (NYSE: IGT) was one of Thursday\u2019s best-performing gaming stocks, as the shares surged following a report that Apollo Global Management (NYSE: APO) is considering a bid for the company’s global gaming division.<\/p>\n

\"IGT\"
A bank of IGT’s popular Wheel of Fortune<\/em> slots, above. The stock spiked Thursday on rumors Apollo may buy IGT’s slot unit. (Image: TheStreet<\/em>)<\/figcaption><\/figure>\n

On the news, shares of IGT surged 10.45% today on volume that was more than triple the daily average, extending the stock\u2019s year-to-date gain to 46.38%. A Bloomberg article says Apollo is \u201camong\u201d parties interested in IGT\u2019s global gaming unit, but other potential suitors weren\u2019t identified.<\/p>\n

Citing unidentified sources with knowledge of the matter, the article noted IGT could command $4 billion to $5 billion, including debt, in a transaction involving the unit, which includes its slot machine business.<\/strong><\/p>\n

Even the low end of that range would represent a coup for the seller, because it closed today with a market capitalization of $6.02 billion, indicating the investment community hasn\u2019t appropriately valued IGT\u2019s global gaming arm.<\/p>\n

Sale Could Put Focus on IGT Lottery Biz<\/h2>\n

IGT announced in June that it\u2019s mulling strategic alternatives<\/a> for its global gaming and PlayDigital units \u2014 moves that could clear up the broader investment thesis and spotlight the profitable lottery arm. At that time, the company said there was no hard time line for engaging in transactions.<\/p>\n

\n

The lottery business accounts for 75% of pro-forma earnings and is a major earnings before interest, taxes, depreciation, and amortization (EBITDA) driver, undervalued relative to competing assets. Analysts argue that when lottery assets are attached to conglomerate-like gaming companies, which is the case with IGT, they don\u2019t get the credit they deserve from investors.<\/p>\n<\/div>\n

By parting with its global gaming and PlayDigital units, IGT would likely streamline its investment thesis, potentially making the shares more appealing to a broader swath of market participants.<\/p>\n

Possible buyers for PlayDigital haven\u2019t been mentioned. In June, IGT cautioned that it may ultimately keep PlayDigital and the global gaming unit in-house or spin those businesses out rather than sell them to other companies.<\/p>\n

Apollo Interest Practical<\/h2>\n

Apollo\u2019s potential interest in IGT\u2019s global gaming arm, though not yet confirmed, is reasonable because the private equity behemoth owns other gaming assets and has been tied to a slew of industry consolidation rumors in recent years.<\/p>\n

\n

Additionally, even at the aforementioned $4 billion to $5 billion price range, a buyer would be getting IGT\u2019s slot machine unit at an attractive valuation<\/a> and discount to where Aristocrat Leisure currently trades. That Australian company is the dominant name in the high-end slot category and a direct rival to IGIT.<\/p>\n<\/div>\n

Apollo has slot machine experience, as it previously was the largest shareholder in PlayAGS (NYSE: AGS). The private equity firm is also the operator of the Venetian on the Las Vegas Strip.<\/p>\n","protected":false},"excerpt":{"rendered":"

International Game Technology (NYSE: IGT) was one of Thursday\u2019s best-performing gaming stocks, as the shares surged following a report that Apollo Global Management (NYSE: APO) is considering a bid for the company’s global gaming division. On the news, shares of IGT surged 10.45% today on volume that was more than triple the daily average, extending […]<\/p>\n","protected":false},"author":46,"featured_media":223456,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093,1,69293],"tags":[81903,81966,81967,81890],"acf":[],"yoast_head":"\nIGT Stock Soars On Rumor Apollo Wants To Buy Slot Unit<\/title>\n<meta name=\"description\" content=\"IGT stock surges amid rumors Apollo wants to acquire slot machine unit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IGT Stock Soars On Rumor Apollo Wants To Buy Slot Unit\" \/>\n<meta property=\"og:description\" content=\"IGT stock surges amid rumors Apollo wants to acquire slot machine unit.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-14T21:23:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-15T16:48:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/WOF.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit\/\",\"url\":\"https:\/\/www.casino.org\/news\/igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit\/\",\"name\":\"IGT Stock Soars On Rumor Apollo Wants To Buy Slot Unit\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/WOF.jpg\",\"datePublished\":\"2023-09-14T21:23:13+00:00\",\"dateModified\":\"2023-09-15T16:48:45+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"IGT stock surges amid rumors Apollo wants to acquire slot machine unit.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/igt-stock-soars-on-rumor-apollo-wants-to-buy-slot-unit\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/WOF.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/WOF.jpg\",\"width\":1200,\"height\":675,\"caption\":\"A bank of IGT's popular Wheel of Fortune slots. 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