Why Scientific Games Stock Dropped 15.6% on Thursday
Shares of gambling industry supplier Scientific Games (NASDAQ: SGMS) fell as much as 15.6% in trading on Thursday after announcing the sale of part of its business. Brookfield Business Partners has agreed to buy Scientific Games' lottery business for $6.05 billion, which includes $5.825 billion in cash and up to $225 million in earn-outs based on earnings before interest, taxes, depreciation, and amortization (EBITDA) targets in 2022 and 2023. This is another unwinding of Scientific Games' business following the September announcement that it was selling the sports betting business OpenBet for $1.2 billion to Endeavor Group.
