IGT Share Price Spikes 14.4 Percent As Sellout Rumors Surface
The Las Vegas based giant slot maker International Game Technology is reportedly up for sale. Their stock price spiked 14.4 percent on the news on Monday that they had hired the services of Morgan Stanley to explore possible buyers.
IGT are one of the biggest names both in social gaming with their DoubleDown casino on Facebook offering as well as in the gaming world. According to reports IGT have been looking for over two months for prospective buyers and have sparked interest from other gaming giants like MGM Resorts International, Stations Casinos and the Bellagio Resort and Casino.
The timing if IGT’s potential sale comes at a time when their company stock has lost 31 percent of its value due to the slow fundamental in the gaming market. This of course could hinder the sale process as potential buyers will be wary to fork out billions. Another obstacle is the legal paper work required for such a sale as international approvals including regulatory requirements would have to be met and could take over a year to complete.
The last year has seen massive slots machine makers in deals. These include Bally Technologies purchasing SHFL entertainment for $1.3 billion and Scientific Games ho purchases slot machine maker WMS Industries for $1.5 billion.
Besides gaming companies private equity firms are also reportedly interested in IGT whose market value is worth more than $3.5 billion.