NEW YORK (TheStreet) -- Caesars Entertainment (CZR) - Get Caesars Entertainment Inc Report stock is up 1.59% to $7.05 in pre-market trading on Monday, as the casino operator's interactive unit considers a sale of its mobile and social games business, the Wall Street Journal reports.
The affiliate has received bids of more than $4 billion from suitors such as financial firms and gaming, media and entertainment companies.
The unit, known as Caesars Interactive Entertainment, has annual sales of nearly $800 million, with first quarter revenue up 28.8% year-over-year.
It is one of the largest online, mobile- and social-gaming companies, which could cause problems between Caesars Entertainment and creditors of the unit, which is in bankruptcy proceedings, the Journal notes.
Bondholders have criticized transactions that occurred before the bankruptcy filing that made Caesars Interactive Entertainment and other valuable assets unattainable, and they have critiqued the unit's acquisition of World Series of Poker trademark rights. Caesars Entertainment has denied wrongdoing, but warned that litigation by bondholders of the unit might pressure it to file for bankruptcy protection as well.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
Caesars's weaknesses include its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: CZR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.