Rumors Say IGT Is Considering Selling
Jun 10, 2014
As part of a plan to combat slow growth, International Game Technology hired Morgan Stanley to explore a sale.
With a market capitalization of over $3 billion, mobile slots developer IGT has been working on a sale for two months now. Several gaming companies and private equity firms are reportedly interested in the sale and stock soared more than 14% when the news got out, giving the company a market value of more than $3.5 billion.
The information first got out in American newspapers, but sources asked to remain anonymous as the matter is not public yet. IGT and Morgan Stanley declined to comment on the sale. Rumor has it the online and mobile casino games developer’s stock lost 31% of its value, due to a slowdown in the gaming industry.
Considering the lengthy regulatory approvals for such mergers, especially the international approvals needed, the company might be facing new challenges. The entire process could take more than a year.
Changes in the gaming industry
In 2013, Bally Technologies bought SHFL, a company providing gaming equipment. The deal cost Bally $1.3 billion. Meanwhile, Scientific Games purchased WMS Industries, paying $1.5 billion for the slot machine manufacturer.
IGT remains one of the world’s biggest names in the slot machine industry, along with companies like Aristocrat Leisure Limited, Sega Sammy Holdings, Konami Corp and Bally Technologies.
Tags: Aristocrat Leisure Limited, Bally Technologies, IGT, International Game Technology, Konami Corp, mobile casino games, mobile slots, Morgan Stanley, Scientific Games, Sega Sammy Holdings, SHFL, WMS Industries