Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Caesars Entertainment (NASDAQ:CZR) jumped as much as 37% today after the company announced a growth spinoff.

So what: Caesars will spin off a "growth" subsidiary that will be called Caesars Growth Partners. Private-equity investors Apollo Management and TPG Capital have said they will each invest $250 million in the company, and Caesars shareholders will be able to contribute a proportional amount to buy into the company. Full details aren't yet available, but the move will reduce the parent company's debt and sell growth assets to shareholders.  

Now what: In effect, this is a giant share offering if every shareholder participates (which they should). It doesn't fundamentally change the challenges for Caesars, particularly in regional gaming, and will dilute shareholders who don't participate in the offering for Caesars Growth Partners. I don't see how this makes the company significantly more valuable than it was yesterday and don't think this is a buy sign for investors. If you're interested in Caesars' growth properties, it would be more beneficial to wait and buy the new company rather than buying the "growth" and "non-growth" assets today. 

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