Harrah's Entertainment Chairman and Chief Executive Officer Gary Loveman said the general public continues to misunderstand what life for the gaming giant will be under its new private equity ownership.
Texas Pacific Group and Apollo Management are not looking to come in, strip down the company and start flipping assets. That is the old way of doing business.
"Today, the problem is how do they invest almost an unimaginably large amount of money profitably where they can earn fees and do good investments."
Loveman said people can look to Texas Pacific's ownership of Neiman Marcus, which it bought in October 2005 for $5.1 billion.
"It was nothing where they needed to shake it down and flip but rather where they wanted to help it experience its growth plan and invest in a high quality asset. This is exactly the same thing that applies to us."
Same-store sales for the high-end retailer rose 6.8 percent last quarter. Texas Pacific announced in April it could be taking the company public again at the end of this summer.
Monday, July 30, 2007
Saturday, July 28, 2007
Friday, July 27, 2007
Tuesday, July 24, 2007
Friday, July 20, 2007
Emperor's new clothes: Harrah's unveils plans for addition to Caesars Palace
Las Vegas Review-Journal
Thursday, July 19, 2007
Monday, July 16, 2007
Business Press item
Jeffrey Pollack, World Series of Poker commissioner for Harrah's Entertainment, said poker still has a public stigma that makes it hard to penetrate mainstream America for sponsorship dollars.
While the statement may seem odd considering how much poker is programmed on various cable channels, he insists that mainstream America still has not warmed up to the game.
"We still have a long way to go in convincing Madison Avenue that poker is a good property to associate with," he said. "The connectivity to Vegas and to gaming for some companies is a little too out-of-the-box. But we are starting to change perception."
Pollack added poker is where NASCAR was 10 years ago in acceptability.
He was NASCAR's managing director of broadcasting and new media for five years before joining Harrah's in August 2005
The world's largest poker tournament has sponsorship deals with Miller Brewing Co., Hershey's and Hertz
While the statement may seem odd considering how much poker is programmed on various cable channels, he insists that mainstream America still has not warmed up to the game.
"We still have a long way to go in convincing Madison Avenue that poker is a good property to associate with," he said. "The connectivity to Vegas and to gaming for some companies is a little too out-of-the-box. But we are starting to change perception."
Pollack added poker is where NASCAR was 10 years ago in acceptability.
He was NASCAR's managing director of broadcasting and new media for five years before joining Harrah's in August 2005
The world's largest poker tournament has sponsorship deals with Miller Brewing Co., Hershey's and Hertz
Sunday, July 15, 2007
Inside Gaming Column Item
Harrah's Chairman Gary Loveman returned to his academic roots. He wrote the forward for a new book published by Harvard Business School Press, "Competing on Analytics -- the new science of winning," by Thomas Davenport and Jeanne Harris.
Loveman was an associate professor at the Harvard University Graduate School of Business Administration before joining Harrah's in 1998 as chief operating officer.
Las Vegas Review-Journal
Loveman was an associate professor at the Harvard University Graduate School of Business Administration before joining Harrah's in 1998 as chief operating officer.
Las Vegas Review-Journal
Saturday, July 14, 2007
Wednesday, July 11, 2007
Sunday, July 08, 2007
Inside Gaming Column Item #2
The $18.5 billion buyout of the Hilton Hotels Corp. by the Blackstone Group does not affect the Las Vegas Hilton, which is owned by a joint-venture partnership led by Los Angeles-based Colony Capital.
Colony Capital signed a licensing agreement to continue using the Hilton brand until 2008.
Las Vegas Review-Journal
Colony Capital signed a licensing agreement to continue using the Hilton brand until 2008.
Las Vegas Review-Journal
Inside Gaming Column Item #1
Edge Group's dreams of building a large resort along Harmon Avenue may have new life, a Reuters report from Israel suggests.
Israeli-based investment group Africa Israel Investments is heading a joint-venture partnership, which includes a "subsidiary of the land owner," that is buying 60 acres along the Harmon corridor west of the Hard Rock Hotel for $625 million, or $10.4 million an acre.
The property includes 49 acres owned by Edge Group, previously slated for the folded W Las Vegas project, and an adjacent 11 acres owned by home builder D.R. Horton.
Edge Group Co-Chairman and Chief Executive Officer Reagan Silber declined to comment through a spokeswoman on any pending deals, citing confidentiality agreements.
Reuters is reporting that Africa Israel Investments will take a 49 percent stake; a New York-based partnership between developers Steve Witkoff and the Cipriani family will take a 30.6 percent stake; and financial consulting firm Credit Suisse and the "subsidiary of the landowner" will each take 10.2 percent stakes.
The Reuters report said the new group intends to build a casino accompanied by several hotels, retail, restaurants and convention space.
The deal is expected to close in August; the project is expected to open in 2012.
The Edge Group announced the demise of W Las Vegas on May 11 when minority partner Starwood Hotels and Resorts Worldwide pulled out of the project.
Las Vegas Review-Journal
Israeli-based investment group Africa Israel Investments is heading a joint-venture partnership, which includes a "subsidiary of the land owner," that is buying 60 acres along the Harmon corridor west of the Hard Rock Hotel for $625 million, or $10.4 million an acre.
The property includes 49 acres owned by Edge Group, previously slated for the folded W Las Vegas project, and an adjacent 11 acres owned by home builder D.R. Horton.
Edge Group Co-Chairman and Chief Executive Officer Reagan Silber declined to comment through a spokeswoman on any pending deals, citing confidentiality agreements.
Reuters is reporting that Africa Israel Investments will take a 49 percent stake; a New York-based partnership between developers Steve Witkoff and the Cipriani family will take a 30.6 percent stake; and financial consulting firm Credit Suisse and the "subsidiary of the landowner" will each take 10.2 percent stakes.
The Reuters report said the new group intends to build a casino accompanied by several hotels, retail, restaurants and convention space.
The deal is expected to close in August; the project is expected to open in 2012.
The Edge Group announced the demise of W Las Vegas on May 11 when minority partner Starwood Hotels and Resorts Worldwide pulled out of the project.
Las Vegas Review-Journal
Saturday, July 07, 2007
Friday, July 06, 2007
Wednesday, July 04, 2007
Sunday, July 01, 2007
Inside Gaming Column item
The Harrah's Entertainment acquisition is one of 10 leveraged buyouts that will determine the current trend now happening with private equity firms, according to the Wall Street Journal Web site.
Apollo Management and Texas Pacific Group need to raise $9 billion in bonds to finance the $17.1 billion buyout, part of nearly $200 billion in financing various firms will be seeking from credit investors to finance deals over the next six months.
How successful the private equity firms are in placing Harrah's bonds could pave the way for additional large buyouts on the Strip. Most speculation centers on MGM Mirage, which has a current market value of approximately $25 billion.
Las Vegas Review-Journal
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