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ironcityg · High Card Joined: 25 Sep 2006 Posts: 15

I was looking on the Harrah's website and found that their board has received an offer for all the shares of Harrah's stock to be acquired by a Texas company for $81 a share.

Could this mean the end of the company as we know it?

I don't think anyone has mentioned this...

IronCityG
Concord, Ca

krazybangs · Posted: Wed Oct 18, 2006 11:30 am Post subject:

Nope

Harrah's is a huge "resort" business as well, and with the gaming industry and hotels that make them up they have no reason to really sell. It's a public company so its not like they can just "give" up their shares.

Just because they stand to lose alot of marketing and publicity from the WSOP, doesn't meant they won't still profit off of it. Just not as much.

But from people who played this year will tell you, they sold out big time.

griffinlord · Posted: Wed Oct 18, 2006 2:03 pm Post subject:

Big companies get bought up all the time and no one notices.

There are two reasons to buy a company: it is undervalued and you are getting a deal or it is undervalued and you are getting a deal.

In the first case you buy it and leave it alone or tweak it a bit and just enjoy the profits.

In the second you dismantal the company selling off some of its components and keeping the core business at little or no net cost.

Or, second again, you aquire valuable assests which have been poorly managed and you manage them better giving you a large return on investment.

My limited understanding is that this buy out is motivated by belief that the Harrah's properties are worth more than the market values them at and will, with some tweaking, provide a nice return on investment.

htrain3434 · Flush Joined: 12 Jul 2006 Posts: 136

The offer was made the day after the republicans added the online gambling language to the port security bill. Two private investment groups made an offer to Harrah's. In my opinion this is because Harrah's will be allowed eventually to get in on the online poker business. It is only illegal if we try to deposit money into accounts will businesses overseas. they added language about intrastate gambling in the bill which would make depositing funds legal if the site is based in the U.S. That is why horse racing and state run lotteries were not attached to the bill.

I think something big is going to happen in the online industry with the casinos in Vegas. It's only a matter of time.

ComicGenius · Posted: Wed Nov 01, 2006 12:19 pm Post subject:

This was an interesting read to me about Harrahs. I had not heard this information yet. I think the same thing a lot of you are thinkin or at lest hoping anyway. That this step taken by Congress (which is the opposite of Pro-gress if you will notice) may pave the way for the American companies to put in their own bid to control the world of online gaming. The down side to this is that there are only about 3 really big American gaming companies left Harrah's, MGM, Station -which is relatively small, so these companies could actually subsidise the new world of online gaming. I put my vote with Harrah's whenever I can. I think they are generally a class act, as witnessed during Katrina when Harrahs first made sure that their employees could continue working and they relocated them so that they could maintain their income. So here's to hoping that the US govt will come to it's senses and realize that gambling is a way of life here and is part of what buit our country from the ground up. That and relocating Indians.

Comic "Freshly scalped" Genius

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