While it may not be the most obvious asset, data can be worth a staggering amount.
In 2015, Caesars Entertainment Operating Co, which owns the famous Caesars Palace casino brand in the US, filed for bankruptcy protection over $18bn of debt. Last summer, it tried to block creditors who had sought to sue its private-equity backed parent company. While Caesars Entertainment offered $4bn to save the casinos, the creditors argued its worth was $12bn. One of the areas where high value had been placed? The data of 45 million customers held in the Total Rewards Loyalty Program, which Information Age reported to be worth $1bn – more than any of the Caesars’ Las Vegas real estate.
Information Age's assertion that "data is now one of the primary assets companies are after in an M&A, in some cases more so than the people, intellectual property or real estate"; is amply demonstrated in the above example. It's a message that is filtering down to businesses of all sizes and in all sectors - the value of your data matters (and not just during a potential crisis situation)
This is an extract from the Business & Management Magazine, Issue 250, January 2017.
Full article is available to Business and Management Faculty members and subscribers of Faculties Online.