Markus Andrews

Equal Pay Day marks just how far into the new year full-time female workers have to keep working to make what their male counterparts made in just the previous year, also known as the gender pay gap.
Women in the U.S. who work full time are still typically paid 83 cents for every dollar paid to men.
At this rate, it could take 134 years to close the global gender pay gap, according to estimates by the World Economic Forum.

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For decades, women have faced an uphill battle in the workplace.
Even now, although women are achieving increasing levels of education and representation in senior leadership positions at work, there remains a stubborn pay gap and promotion gap.

Equal Pay Day — which this year falls on March 25 — is a reminder of the persistent income inequality between men and women. The date marks just how far into the new year full-time female workers have to keep working to make what their male counterparts typically made in just the previous year.
As it stands, women earn just 83 cents for every dollar earned by men, according to an analysis of U.S. Census Bureau data by the National Women’s Law Center.
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Over time, the inequality is magnified. Based on today’s wage gap, a woman just starting out will lose up to $1 million over a 40-year career, according to the Center’s research.
“When you look at it by race and gender, that disparity is even wider,” said Jasmine Tucker, the National Women’s Law Center’s vice president of research. “This means that women are never, ever going to catch up.”

In fact, it could take roughly five generations to close the pay gap worldwide, according to 2024 estimates by the World Economic Forum.
“Based on current data, it will take 134 years to reach full parity,” the latest global gender gap report said.
In Northern America, despite achieving equality in educational attainment, there are still wide disparities in earned income and women’s representation in senior leadership positions, the report found.
“Where diversity, equity, and inclusion [DEI] efforts are longer lasting, the returns follow,” the World Economic Forum report also said. In the U.S., at least, many of those efforts are now being pared back or scrapped entirely to reflect a new political reality and the priorities of the Trump administration.

Why the pay gap persists

There is no single explanation for why progress toward narrowing the pay gap has mostly stalled, according to a separate 2023 report by the Pew Research Center.
Women are still more likely than men to pursue careers in lower-paying industries, and to take time out of the labor force or reduce the number of hours worked because of caretaking responsibilities — often referred to as the “motherhood penalty.” Systemic bias has also played a role, Pew found.

Long-term consequences of inequity

“The most important part is not just that [women] make less, it’s what that turns into — the wealth gap,” said Cary Carbonaro, a certified financial planner and managing wealth advisor at Scottsdale, Arizona-based Ashton Thomas.
Not only do women earn less than men, but women also save less each month and feel less optimistic about their long-term financial standing.

Heading into 2025, women were contributing $1,825.18 a month, on average, to their various savings accounts, while men contributed $2,352.34, according to New York Life’s 2025 Wealth Watch survey.
Over the course of the year, women aim to save $9,463.98, on average, compared to the $17,963.13 that their male counterparts aim to put away, the report found.  
They also tend to invest more conservatively, other research by Wells Fargo also shows.
Together, that contributes to a significant savings shortfall.
Although there is no immediate solution to achieving pay equity, there are some measures that can help women shore up their economic standing, Carbonaro said.
“Step one is a budget: what’s coming and what’s going out,” she said. “Spend less than you make. It’s so basic, but it’s the most important building block to securing your financial future.” More

Shares of satellite communications giant Viasat rose after receiving an upgrade at Deutsche Bank.
Analyst Edison Yu said there are “multiple paths” for the company to create equity value, saying its potential is “increasingly compelling.”
The endorsement comes as the stock has already seen massive gains this year.

Viasat offices are shown at the company’s headquarters in Carlsbad, California, on March 9, 2022.
Mike Blake | Reuters

Viasat’s stock soared on Monday after the Starlink competitor received an analyst endorsement from Deutsche Bank.
Shares of the satellite communications giant and competitor to Starlink — the satellite internet service owned and operated by Elon Musk’s SpaceX — jumped 14.4% during the trading session after analyst Edison Yu upgraded the stock to buy from hold.

“We see multiple paths for the company to create equity value by materially deleveraging its balance sheet through asset monetization,” the analyst said in a note to clients Monday. “From a timing perspective, this may take 12-18 months to fully play out but we see the risk/reward profile at current levels being increasingly compelling.”

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VSAT, 1-day

Yu noted that he still has concerns regarding pressure from Starlink on Viasat’s core communication services business in the longer term. Starlink has recently made moves over the past year to expand its presence in various countries.
Earlier this month, Musk secured deals with Indian telecommunications companies such as Reliance’s Jio and Bharti Airtel to roll out Starlink’s internet services across the country. Prior to that, Musk also launched Starlink satellite internet services in Indonesia in May 2024.
Yu’s bullish call comes as Viasat shares have already grown substantially in 2025. Year to date, the stock has risen roughly 30%, far outpacing the S&P 500, which is off more than 2% during that period. In this month alone, the stock has advanced more than 25%.
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An inherited individual retirement account rule change for 2025 could trigger a 25% tax penalty for certain heirs.
Since 2020, most non-spouse heirs must empty inherited IRA accounts by the 10th year after the original account owner’s death.
Starting in 2025, these heirs must start yearly required minimum distributions if the original account owner had reached their RMD age before death.

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There has been a change to inherited individual retirement account rules which mandates that certain heirs must take required withdrawals each year or face an IRS penalty.
Starting in 2025, certain beneficiaries must take annual required minimum distributions while depleting inherited IRAs over 10 years, according to final regulations released in July.

The “10-year rule” and RMD requirement applies to most non-spouse heirs — commonly, adult children — if the original IRA owner reached RMD age before their death.
Meanwhile, the average investor doesn’t know a great deal about these guidelines, said certified financial planner and enrolled agent Catherine Valega, founder of Green Bee Advisory in the Boston area.
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Despite the change, beneficiaries should weigh strategic IRA withdrawals, depending on tax brackets each year, which could mean emptying accounts sooner, experts say.
Here’s what to know about the change for inherited IRAs.

Who could face an IRS penalty

There’s been widespread confusion about which heirs need to take RMDs from inherited IRAs, according to IRA expert Denise Appleby, CEO of Appleby Retirement Consulting in Grayson, Georgia.
Before the Secure Act of 2019, IRA heirs could “stretch” inherited account withdrawals over their lifetime, which reduced yearly taxes.
Since 2020, the 10-year rule has applied to heirs who are not a spouse, minor child, disabled, chronically ill or certain trusts. However, until the IRS issued its regulations last year, it’s been unclear whether yearly RMDs were required during the 10-year drawdown.

If the original owner reached RMD age before death, beneficiaries also must take RMDs, Appleby said.
Previously, the IRS waived penalties for missed RMDs on inherited IRAs. But if you don’t start yearly RMDs in 2025, you could be subject to a 25% penalty on the amount you should have withdrawn. 
The IRS could reduce the fee to 10% if you withdraw the proper amount within two years and file Form 5329. In some cases, the agency will waive the penalty entirely.  
“A lot of clients are getting that excise tax waived” by correcting the RMD, filling out the form and providing a “reasonable explanation,” Appleby said.

Why it could pay to take the money sooner

While penalties will apply for missed RMDs in 2025, some heirs should start emptying inherited accounts sooner, experts say.
Over the past few years, some heirs have skipped yearly withdrawals from inherited IRAs, which could mean larger RMDs before the 10-year window ends. Pre-tax withdrawals are subject to regular income taxes.
“The quicker you do it, the better it is,” said CFP Scott Bishop, partner and managing director of Presidio Wealth Partners, based in Houston. “It’s better to start clipping that away earlier.”
Typically, advisors project taxes over multiple years and take IRA withdrawals during lower-income years. More

Fiserv CEO Frank Bisignano is scheduled to face questions Tuesday from senators on his nomination to serve as Social Security commissioner.
Ahead of that hearing, Democratic Senators Elizabeth Warren and Ron Wyden sent Bisignano a letter Monday to ask him whether he would support privatizing the agency and if he would be willing to undo recent changes at the agency if they proved harmful to beneficiaries.

Frank Bisignano
Victor J. Blue | Bloomberg | Getty Images

Two Democratic Senators — Elizabeth Warren of Massachusetts and Ron Wyden of Oregon — sent a letter Monday to Frank Bisignano, the nominee to lead the Social Security Administration, to ask whether he supports privatizing the agency and if he would be willing to undo recent changes.
Bisignano, who is the chief executive officer of payments technology company Fiserv, has been nominated by President Donald Trump to serve as commissioner of the Social Security Administration.

Bisignano’s Senate confirmation hearing is scheduled for Tuesday.
The hearing comes as current temporary leadership of the agency last week made headlines for threatening to shut down the agency following a temporary restraining order that barred the so-called Department of Government Efficiency from accessing Americans’ personal data.
In the letter to Bisignano, Warren and Wyden said ongoing efforts by the Trump administration, in cooperation with DOGE, may result in changes that will “hollow out” the agency and “deprive Americans of Social Security benefits they earned and need.”
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Those changes include new “burdensome” administrative requirements for beneficiaries, thousands of job cuts and the closure of dozens of Social Security offices, the senators said.

Warren and Wyden wrote they are “deeply concerned” the Trump administration and DOGE are setting the Social Security Administration up for failure, which could be used to justify a “private sector fix.” DOGE leader and Tesla CEO Elon Musk, who has “clear disdain” for the program, “has taken up the mantle as the latest privatization crusader,” the senators wrote.
Musk, in a February interview with podcast host Joe Rogan, said Social Security is the “biggest Ponzi scheme of all time.”
Neither Bisignano nor the White House responded to requests from CNBC for comment by press time.

Fiserv could ‘theoretically benefit’ from privatization

The idea of privatizing Social Security has been pursued before, including by President George W. Bush in 2005. While those efforts failed, talk about whether it makes sense to allow for Americans’ retirement money to be invested in private accounts has recently resurfaced.
The Social Security Administration currently invests the payroll taxes it receives that it is not immediately using to pay for benefits or administrative costs in Treasury bonds. By allowing for those funds to be invested more aggressively, some argue it could provide better returns. To be sure, that also requires taking on more risk.

Warren and Wyden also said they are concerned that private equity professionals Musk has reportedly enlisted to help with the agency will follow the “typical playbook” for that investment industry — “extracting anything of value before selling the remains for parts.”
Fiserv, which helps move money for financial institutions and individuals, “could theoretically benefit from a privatization of Social Security,” Warren and Wyden wrote.

Bisignano to face questions on agency’s future

The first of a list of questions for Bisignano that Warren and Wyden include in their letter: “Will you commit to not privatizing any components of the Social Security program?”
They also inquired whether Bisignano would commit to not closing any Social Security offices if that would lead to severe disruptions, whether he would be willing to reverse agency layoffs if they contribute to longer wait times or otherwise affect beneficiaries’ receipt of benefits and whether he would be willing to reverse a new policy that will require beneficiaries to prove their identities in person.

On Tuesday, Warren, Wyden and other senators will be able to ask Bisignano his views on the agency’s future and other issues during his confirmation hearing.
To be sure, some leaders may consider Bisignano’s private sector experience an asset.
“Frank’s decades of leadership in the private sector, specializing in financial services and payments, make him exceptionally qualified for the task ahead,” Senate Finance Committee Chairman Mike Crapo, R-Idaho, said in a March 14 statement on the upcoming confirmation hearing following a conversation with Bisignano. More

The Phillips 66 Los Angeles Refinery Wilmington Plant stands on November 28, 2022 in Wilmington, California.
Mario Tama | Getty Images

Uncertainty over the economy and tariff wars have been fueling volatility in the stock market, but dividend-paying stocks can offer investors some stability.
Investors looking for stable income in this shaky backdrop can consider adding stocks of dividend-paying companies to their portfolios. To that end, the recommendations of top Wall Street analysts can inform investors who are on the hunt for the right names.

Here are three dividend-paying stocks, highlighted by Wall Street’s top pros on TipRanks, a platform that ranks analysts based on their past performance.
Vitesse Energy
This week’s first dividend pick is Vitesse Energy (VTS), a unique energy company that owns financial interests, mainly as a non-operator, in oil and gas wells drilled by leading U.S. operators. Earlier this month, Vitesse completed the acquisition of Lucero Energy. The company expects this deal to increase dividends and provide additional liquidity to bolster its ability to make accretive acquisitions.
Recently, Vitesse announced its fourth-quarter results and declared a quarterly dividend of $0.5625 per share, payable on March 31. This payment marks a 7% rise from the prior quarter. VTS stock offers a dividend yield of 9.3%.
Following the Q4 print, Jefferies analyst Lloyd Byrne reiterated a buy rating on VTS stock with a price target of $33. The analyst noted that the Q4 EBITDA (earnings before interest, tax, depreciation, and amortization) modestly lagged the consensus estimate due to marginally lower-than-expected production and the one-time costs related to the Lucero acquisition.
Byrne noted the planned increase in Vitesse’s dividend following the completion of the Lucero acquisition. The analyst stated that increasing the dividend is consistent with VTS’ strategy of raising its payout as the expected operating cash flow grows. He added that management aims to keep the dividend coverage ratio at about 1.0x.

The analyst highlighted that the Lucero deal adds to the company’s operated production in the Bakken and nearly 25 net locations, which Vitesse believes equates to about 10 years of inventory life. Byrne views the Lucero deal positively, as it is accretive to Vitesse’s earnings, dividend, free cash flow, and net asset value.
“While the deal is a departure from VTS’s non-op strategy, adding an operated leg gives VTS incremental control over its capital and potential additional deal flow,” said Byrne.
Byrne ranks No. 166 among more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 54% of the time, delivering an average return of 20.1%. See Vitesse Energy Stock Charts on TipRanks.
Viper Energy
We move to Viper Energy (VNOM), an oil and gas company that is a subsidiary of Diamondback Energy (FANG). Viper was formed by Diamondback to own, acquire, and exploit oil and natural gas properties in North America. It is focused on owning and acquiring mineral and royalty interests in oil-weighted basins, mainly the Permian Basin.
The company announced a base cash dividend of 30 cents per share and a variable cash dividend of 35 cents per share for the fourth quarter of 2024. The total Q4 2024 capital return of 65 cents per share represents 75% of the cash available for distribution.
Recently, JPMorgan analyst Arun Jayaram reiterated a buy rating on VNOM stock but lowered the price target to $51 from $56 as part of an update to his firm’s exploration and production models. The update reflected natural gas supply-demand analysis, stronger than expected LNG (liquified natural gas) demand-pull and the possibility of further decline in oil prices. The decline would be due to the combination of record U.S. oil supply, the return of OPEC+ barrels in April and global trade risk amid tariffs.
Explaining his bullish stance on VNOM stock, Jayaram said that mineral companies like Viper own the perpetual royalty interests under oil and gas leasehold, which gives them exposure to growth with no capital or operating expenses.
The analyst highlighted Viper’s policy of returning about 75% of all distributable cash flow to shareholders through base and variable dividends and share buybacks. Jayaram thinks that Viper is unique due to its relationship with Diamondback Energy. Notably, Diamondback operates a major portion of Viper’s acreage, which gives visibility and reduces a key uncertainty that is usually associated with companies in the minerals space.
“In Viper’s case, between EBITDA growth and FCF yield, we see an attractive total return proposition,” the analyst said.
Jayaram ranks No. 677 among more than 9,400 analysts tracked by TipRanks. His ratings have been successful 53% of the time, delivering an average return of 8.3%. See Viper Energy Stock Buybacks on TipRanks.
ConocoPhillips
Jayaram is also bullish on ConocoPhillips (COP) and reaffirmed a buy rating on the stock but lowered the price target to $115 from $127 as part of his update to his firm’s exploration and production models. As mentioned above, the analyst is concerned about the possibility of a further decline in oil prices. ConocoPhillips announced a dividend of 78 cents a share for Q1 2025. COP stock offers a dividend yield of 3.1%.
The analyst said that since ConocoPhillips’ 2016 strategy reset, the company has been one of the best exploration and production players. Jayaram noted multiple counter-cyclical transactions executed by COP that have lowered its cost of supply and significantly enhanced the durability of the company’s “Lower 48” inventory, bolstering its balance sheet and portfolio optionality to LNG.
Jayaram added that on a normalized basis, ConocoPhillips’ corporate break-even would be at the low-end of the peer group, given that it has much lower sustaining capital requirements than its peers. However, the combination of the company’s long-cycle investments like Willow and Port Arthur, as well as the Marathon Oil merger, have modestly increased the oil beta of COP stock.
He expects ConocoPhillips to be one the few exploration and production companies in JPMorgan’s coverage that could increase their cash return in 2025, including stock buybacks of $6 billion.
“We view COP as a core E&P holding given its portfolio strength, inventory durability, and shareholder friendly cash return framework,” said Jayaram. See ConocoPhillips Hedge Fund Trading Activity on TipRanks. More

As far as investments go, only a few luxury designer handbags gain, rather than lose, value over time.
Hermes Birkin bags have an average annual increase in value of 14.2%, outperforming the S&P 500.
However, framing such designer purchases as “investments” does women a disservice, experts say.

Luxury handbags have outperformed other collectibles in recent years and are increasingly viewed as a potential investment category in the eyes of consumers and analysts, at least according to some recent reports.
For the first time, the value proposition of designer handbags from top brands, such as Hermes, Chanel, Goyard and Louis Vuitton are growing across the board, one report by luxury resale site Rebag found last year. 

“These trends signal exciting investment opportunities across both heritage and more attainable brands,” the Rebag report said.
Handbags are among the least volatile of any collectible asset and offer a good risk versus reward, they have also proven to be a worthwhile hedge against inflation, according to a separate 2022 study by Credit Suisse.
However, while some designer handbags, particularly classic and sought-after styles, can potentially retain or even increase in value over time, they are not a traditional investment in the way stocks or real estate are, expert say.
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Over the last two decades, luxury handbags went from being an accessory to what is now “the only female-centric collecting category,” according to a 2020 report by Art Market Research.

For women, however, the evolution of such increasingly expensive purchases has come at a price, said Jasmine Tucker, the National Women’s Law Center’s vice president of research.
“In order to appear that you are in your place, you have to look a certain way, and that grooming can cost more for women, and they are doing that at a lower pay,” Tucker said.

A Hermes Birkin bag in a window display at a KaDeWe department store in Berlin, Germany, on Friday, Jan. 3, 2025. 
Bloomberg | Bloomberg | Getty Images

As far as investments go, only a few luxury bags gain, rather than lose, value over time.
Historically, just the Hermes Birkin and the small group of other top designer bags have value retention rates near 90% or higher, Rebag found. 
Birkin bags, especially, have increased in value year over year, with an average annual jump in value of 14.2% between 1980 and 2015, according to another study by Baghunter. The bags currently retail for $9,000 and up but can resell for $30,000 or more, depending on size, color and condition.
Meanwhile, since stocks go up and down, the S&P 500 index has an average annualized return of around 10%.

A bag may be a ‘smart purchase,’ not an ‘investment’

Framing a designer handbag as as “investment” does women a disservice, according to Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida.
“It grosses me out when I see purchases positioned as investments, it hits me the wrong way,” McClanahan said.
“I am totally for people buying nice things, but I wouldn’t call it an investment,” said McClanahan, who also is a member of CNBC’s Advisor Council.
“If you have a handbag you know you will keep forever, maybe that could be considered a smart purchase,” she said. “But you still need to make sure you are spending less than you make and you are saving.”
At some point in their lives, most women will likely be on their own and solely in charge of their finances, McClanahan said, that makes it more imperative that women are planning and investing for the future.

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Caesars Palace hotel and casino in Las Vegas, Nevada, US, on Saturday, June 1, 2024. 
Rhonda Churcill | Bloomberg | Getty Images

Company: Caesars Entertainment Inc (CZR)

Business: Caesars Entertainment is a diversified gaming and hospitality company which operates through several segments: Las Vegas, Regional, Caesars Digital, and Managed and Branded, in addition to Corporate and Other. Its Las Vegas Segment properties include The Cromwell, Flamingo Las Vegas and The LINQ Hotel & Casino. Its Regional properties include Circus Circus Reno, Grand Victoria Casino and Horseshoe Baltimore. Its Managed and Branded properties include Harrah’s Ak-Chin, Harrah’s Cherokee, and Harrah’s Cherokee Valley River. Its resorts operate primarily under the Caesars, Harrah’s, Horseshoe and Eldorado brand names. It offers diversified gaming, entertainment and hospitality amenities, destinations, and a full suite of mobile and online gaming and sports betting experiences.
Stock Market Value: $5.8B ($27.36 per share)

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Caesars Entertainment over the past 12 months

Activist: Carl Icahn

Ownership: 1.15%
Average Cost: n/a
Activist Commentary: Carl Icahn is the grandfather of shareholder activism and a true pioneer of the strategy. He is very passionate about shareholder rights and good corporate governance and will go to extreme lengths to fight incompetent boards and management teams to protect shareholder value. Icahn has invested across all sectors over his more than six-decade long career, and he has a tremendous history of creating value at casinos. In 1998, Icahn acquired the Stratosphere casino operations, fixed it up, grew it and sold it for more than $1 billion about a decade later. Icahn acquired an interest in Tropicana in 2008 when it was bankrupt, brought in new leadership and restructured it and sold it in April 2018 for $1.85 billion. And of course, he disclosed a stake in Caesars in 2019, replaced departing CEO Mark Frissora and orchestrated the Eldorado merger.

What’s happening

Earlier this month, Carl Icahn and Caesars reached an agreement in which the company consented to expanding the size of the board to 12 directors and appointing Jesse Lynn (general counsel of Icahn Enterprises) and Ted Papapostolou (chief financial officer of Icahn Enterprises) as directors to the company’s board. Icahn agreed to abide by certain customary standstill and voting provisions.

Behind the scenes

This is not Carl Icahn’s first foray at Caesars. He filed a 13D in February 2019 stating then that he believed the board should conduct a strategic review with a view toward a sale of the company being the optimal path to shareholder value creation. On March 1, 2019, Icahn and Caesars entered into a director appointment and nomination agreement, pursuant to which John Boushy, Matthew Ferko and Christopher Williams resigned from the board and James Nelson, Courtney Mather and Keith Cozza were appointed to fill the resulting vacancies. On July 20, 2020, Caesars merged with Eldorado to form Caesars Entertainment with Icahn’s support. Courtney Mather is still on the board of Caesars but no longer works for Carl Icahn.

Since the merger, Caesars has been attempting to strengthen its balance sheet, pursuing strategic divestments and acquisitions and expanding into the growing digital gaming market along with the rest of the brick-and-mortar gaming industry. Many of these initiatives have been successful and some have been disappointing. On Oct. 1, 2021, Caesars’ stock price topped $119 per share. Now, almost five years later, the stock has dropped back below the price when Icahn merged Caesars with Eldorado in 2020 – in the heart of Covid – despite revenue increasing from $9.6 billion in 2021 to $11.2 billion today and operating income increasing from $1.7 billion to $2.3 billion over those respective periods. Icahn clearly sees a great business at a very attractive price.
Icahn and the company recently entered into an agreement in which Caesar agreed to expand the size of the board to 12 and appoint Jesse Lynn (general counsel of Icahn Enterprises) and Ted Papapostolou (chief financial officer of Icahn Enterprises) to the company’s board. In the press release announcing this agreement, Icahn stated that they, “look forward to working with [management] and the Board to maximize value for all shareholders, including by exploring strategic alternatives for the Company’s underappreciated digital business.”
A spin-off of Caesars Digital makes sense for several reasons. In 2024, Caesars Digital generated $1.16 billion in revenue, accounting for 10.3% of the company’s total revenue. This represented a 19.5% growth from the year prior and 112.2% growth since 2022. Consensus estimates suggest that Digital can continue to grow in mid-double-digits. Digital’s earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) has also surged 207.9% from 2023 to 2024, with projections of another 160.9% increase in 2025. In contrast, the company’s brick-and-mortar segments (Las Vegas and Regional), have remained relatively stagnant, with revenue declining 2.34% from 2023 and 1.78% from 2022. EBITDAR has also declined by 6.56% and 5.87% over the same periods, respectively, and consensus estimates predict a similar trend going forward. Clearly, these are two businesses at vastly different points in their growth cycles, making it difficult for the market to fairly evaluate them as a single entity. Currently Caesars trades at 8.43-times EBITDA, whereas digital peers of Caesars Digital trade at 15 times to 25 times. Applying that multiple range to Digital’s $305 million of 2025E adjusted EBITDA would render an entity with a value of approximately $4.6 billion to $7.6 billion. As Digital only represents 3% of the company’s current EBITDA, this separation would unlock a ton of value, as Digital’s standalone valuation would represent 15% to 25% of the company’s total current enterprise value – significantly higher than what its implied valuation is right now within Caesars. This separation would also allow investors the option to invest in a consistent legacy casino business or a riskier high-growth digital business. This does not have to be a straight sale or spinoff, either. Icahn is one of the most creative investors ever and his two nominees will likely work to figure out what the best structure is for shareholders. For example, the company could retain a piece of the digital business or enter into an agreement with the new entity to run the business.
Carl Icahn knows a ton about the casino business. He has had a tremendous history of creating value at casinos. In 1998, Icahn acquired the Stratosphere casino operations, fixed it up, grew it and sold it for more than $1 billion about a decade later. Icahn acquired an interest in Tropicana in 2008 when it was bankrupt, brought in new leadership and restructured it and sold it in April 2018 for $1.85 billion. And of course, he disclosed a stake in Caesars in 2019, replaced departing CEO Mark Frissora and orchestrated the Eldorado merger. So, there is no other activist more qualified to create value at a company like Caesars. The stealth nature and structure of the agreement in addition to the comments made by Caesars and Icahn strongly indicate that this is a very amicable arrangement, and that Icahn is confident in management’s ability. While CEOs do not generally like to spin off assets, all indications are that Caesars’ management is receptive to this strategy.
Icahn is not a micro-manager and trusts his people and management to execute effectively. This has been an area rife for activism with Icahn protege Keith Meister on the board of MGM, two activists in Penn Entertainment and two more activists in Entain with Eminence founder Ricky Sandler on the board. This industry is at an inflection point with the onset of interactive gaming. The companies that navigate this better – likely through acquisitions and alliances, and without significantly weakening their balance sheets – will be the winners. I am not sure you can have a better ally in that type of initiative than Carl Icahn.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More