Two Icahn executives join Caesars Entertainment board
Jesse Lynn and Ted Papapostolou will join the Caesars board, giving Icahn more potential influence over the gaming giant.
US. Caesars Entertainment has announced the appointment of two senior figures from Icahn Enterprises to its board. Icahn’s general counsel Jesse Lynn and chief financial officer Ted Papapostolou join the Caesars Board as independent directors subject to regulatory approvals. Their appointments take board membership to 12 directors, 10 of whom are independent.
Icahn Enterprises chairman Carl Icahn has a long involvement with Caesars, having played a role in the 2020 merger with Eldorado Resorts. Despite having reportedly built a large stake in the company, Icahn has denied being an activist investor. However, his statement on the latest board changes suggests the possibility that we could see M&A activity for Caesars’ digital business.
He said: “I have great respect for Tom Reeg and the senior management team and what they have accomplished since the merger in 2020. We look forward to working with Tom and the Board to maximise value for all shareholders, including by exploring strategic alternatives for the company’s under-appreciated digital business.”
Tom Reeg, CEO of Caesars Entertainment, said in the release: “I would like to welcome Jesse and Ted to the Board. Jesse and Ted bring diverse and relevant experience that will assist the Board in maximising value for all shareholders.”
It its full-year 2024 financial results, Caesars Entertainment reported full-year revenue of $11.2bn, down 3 per cent compared to 2023, and a net loss of $278m, down from the prior year’s net profit of $786m. The decline was primarily due to a $940m valuation allowance release in 2023 that impacted deferred tax assets.
Adjusted same-store EBITDA for 2024 was $3.7bn, compared to $3.9bn in the prior year. However, Caesars Digital demonstrated year-over-year growth, with adjusted EBITDA increasing to $117m from $38m in 2023. The company said it continued to focus on operational efficiency and the growth of its digital segment.
