Silicon Bowery

Gaming Space Is Really Hurting…

Really good article in the WSJ today on how some of the larger deals in the gaming space aren’t panning out [in particular Harrahs] so well.  A few friends in the PE space are more focused now on looking at gaming assets than they were some time ago.  Interesting.

This is an industry that is going through an unprecedented change and most of these stocks are down 70-100%.  Development pipeline cutbacks are really going to hurt growth over the next year and with debt trading at 60/70 cents on the dollar it makes more sense to use a revolver and buy back debt than focus on growth.