Poker Giant Harrah's Gets Buyout Bid

While the world watches the legal happenings in the online gaming world, the land-based casinos continue to flourish. Harrah's Entertainment announced that it received a buyout bid of $15.1 billion from private equity firms Apollo Management and Texas Pacific Group.

News of the possible buyout sent Harrah's stock prices through the roof, increasing the value to $75.95 in midday trading on the New York Stock Exchange. The private equities groups have offered $81 per share, a 22 percent premium over Harrah's closing stock on Friday.

Harrah's, which operates 40 casinos, isn't the only one to see stock increases thanks to the buyout news, as MGM Mirage, Las Vegas Sands, and Wynn Resorts all saw their values rise.

Harrah's appeared noncommittal upon receiving the bid, but did appoint a special committee of independent directors to review the offer. There is some speculation in the business industry that there may be more buyout bids on the way as well. According to a Harrah's release, "The Special Committee has not determined that a transaction is in the best interest of Harrah's and its stockholders. There is no assurance that Harrah's will enter into this or any other transaction."

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