The hotel and gaming companies that are the subject of a $1.8 billion takeover bid by Marriott International are set to take a major step toward closing their deals with the hotel giant.
The company said Monday that it will invest $2 billion in its new hotel portfolio, including its gaming and esports business.
Marriott is also acquiring a $2.3 billion gaming and technology company called Zappos, and the company is expected to invest another $1 million in a sports-related business in the next two to three months.
The new hotel acquisitions are the latest to drive Marriott’s stock price higher.
The company has lost money for the past three quarters, and has seen its stock tumble nearly 25 percent over the past 12 months.
The shares were down $2 per share in after-hours trading on Monday.
The investment in Marriott’s gaming and tech companies comes as the company has been losing money in the gaming business.
In fiscal year 2018, Marriott reported $4.4 billion in losses on gaming and $1,976 million in other operating losses, according to the company’s latest quarterly earnings report.
The acquisitions in the new hotel deals include Marriott International, which owns and operates resorts in 10 countries.
The hotel company’s gaming unit operates more than 800 properties across the world, and it’s expected to reach $2 trillion in revenue this year.
The Zappo acquisition is a $4 billion deal, but the company said it is also investing $1 and $2 million each in other assets, including a $600 million office park in Dubai, as part of its new acquisition.
The Marriott acquisition of Zapps will enable Marriott to expand its gaming business beyond its traditional gaming brands and to further develop its gaming technology.
The Zappa, a sports app that allows guests to score points for activities like golf, golfers, tennis, soccer and horse racing, was introduced in 2015.