Morgan Stanley Maintains Overweight on International Game Tech
Morgan Stanley reiterates its Overweight rating on International Game Tech (NYSE: IGT) as company assumes position in social gaming through acquisition.
Morgan Stanley notes, "IGT announced that it has agreed to purchase Double Down Interactive (“DDI”), an online social gaming company with 4.7 mn monthly active users (+40% since Oct. 2011), for $500 mn in cash ($250 mn upfront). DDI currently offers play-for-free online casino games (no poker) via social media, collecting ~70% of user bookings. ...We believe acquisition of an online social gaming company positions it well for the potential legalization of online gambling in the US."
IGT closed at $17.78 per share on Thursday.
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