Investor Carl Icahn Buys Shares in Caesars Entertainment 

Prominent activist investor Carl Icahn (pictured) has bought an unknown stake in Las Vegas-based casino operator Caesars Entertainment. 

The investment was described as “large” by CNBC host Scott Wapner after he had an off-air phone call with Icahn. However, we do know that it will be under 10%, as the figure has not yet been published. If it was more than 10%, the Securities and Exchange Commission would have already been informed and it would be a matter of public record. 

Icahn, who has an estimated net worth of $5.4 billion, made his name on Wall Street in the ’90s. He helped pioneer the concept of significant shareholders using their power to influence corporate decision-making. 

However, Icahn, now 88, says he has no plans to use his new Caesars Investment to put any kind of pressure on company bosses to change things.

“I like Caesars and I own some stock. I would never do activism in Caesars,” Icahn told Wapner.

The Investment 

Under Securities and Exchange Commission regulations, stock purchases in large companies bigger than 5% must be filed and published within 10 days of the transaction. Smaller than that, and the purchase is usually left to be published in quarterly financial reports.  

At around $32 a share prior to the reveal of Icahn’s recent purchase, even a 5% investment in Caesars would represent a significant chunk of change. Stock prices for the company have risen 12% over the two days since the news. 

Icahn previously invested in the former Caesars Entertainment in 2019. He used his 10% stake in the company to help push for the operator’s $17.3 billion acquisition by Eldorado Resorts in 2020, which then took on the Caesars Entertainment name. 

That familiarity with the former Eldorado Resorts and now Caesars ownership, including CEO Tom Reeg, could have been part of the attraction for Icahn.

Las Vegas, where Caesars is the second-largest casino operator, is currently going through a massive boom. Despite some pessimism that the record growth would slow down soon, April 2024’s revenues were a new record for that month. 

Having said all that, Caesars also has a large debt burden of some $12 billion, which may concern some investors. 

Icahn’s History 

As well as his Wall Street exploits, Icahn has long been a friend of fellow rich and powerful individuals in the business world, and more specifically in gambling.

He has previously been a majority shareholder in several Atlantic City casinos, including Trump Entertainment Resorts. Former President Trump and Icahn have had a volatile business and personal relationship over the years.

In the ’90s, Icahn also became infamous as a so-called corporate raider. That’s after several highly publicized cases of asset-stripping at failing firms bought by his company, Icahn Enterprises.

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