Israeli online casino game business sold to Chinese consortium for $4.4bn
Caesars Entertainment is selling its online casino-style games business, Playtika, to a Chinese consortium for $4.4bn. Consortium leader, Shanghai Giant Network Technology, said that Playtika will continue to be run independently in Israel by its existing management team. Parties to the all-cash deal also included; Yunfeng Capital; China Oceanwide; China Minsheng; CDH China; and Hony Capital Fund. The agreement is expected to be concluded in H2 2016.

Caesars Entertainment Corp. has agreed to sell its Playtika business to a Chinese consortium for $4.4 billion (€3.9 billion).

Caesars Entertainment Corp. has agreed to sell its Playtika business to a Chinese consortium for $4.4 billion (€3.9 billion).

The group of investors, led by Shanghai Giant Network Technology Co., said in a statement yesterday (Sunday) the online casino-style games unit will remain independently run from its headquarters in Herzliya, Israel.

In addition, the current Playtika management team will continue to run day-to-day operations.

The agreement, which represents an all-cash deal, also includes Yunfeng Capital, a private equity firm founded by Alibaba Group Holding founder Jack Ma; China Oceanwide Holdings Group; China Minsheng Trust Co.; CDH China HF Holdings Company Limited; and Hony Capital Fund.

“Playtika's growth has been exceptional, and highlights its outstanding team, excellent corporate culture, cutting-edge big data analytics, and its unique ability to transform and grow games,” Shanghai Giant Network Technology founder and chairman, Shi Yuzhu, said.

Robert Antokol, co-founder and chief executive of Playtika, added: “This transaction is a testament to Playtika's unique culture and the innovative spirit of our employees who for the past six years have consistently designed, produced and operated some of the most compelling, immersive and creative social games in the world.”

Mitch Garber, chairman and chief executive of Caesars Interactive Entertainment, also said: “It has been a particularly rewarding experience growing Playtika from a 10-person start-up, when CIE acquired them in 2011, into a global leader.

“Playtika today is a highly profitable growth company with more than 1,300 employees, multiple top grossing titles and millions of daily users.”

The deal remains subject to customary regulatory approvals and other closing conditions, with both parties expecting it to close in the third or fourth quarter of this year.

Related article: Caesars merger altered to appease creditors