When I first saw the news about IGT being for sale I didn’t think much of it. The headline was shaped by IGT’s stock price being up 15%. I’m not in the market, so I wasn’t concerned. Then it hit me that one of the largest slot machine and the biggest video poker machine company is on the market and I was full of WOW.
Evidently this wasn’t a surprise to the stock market as IGT’s value has dropped 31% in the past year. They laid off 7% of their staff earlier this year in hopes of cutting enough costs to salvage the company. It doesn’t look like that’s working as the company is rumored to be on the market just to keep it alive. Reuters says IGT has been planning for a sale for the past two months.
The Las Vegas Review Journal reports that a number of private equity companies and gaming companies are interested in acquiring IGT. The most interesting to me are Konami Gaming and Apollo Global Management. Let’s take a quick look at how both could work with IGT.