(AsiaGameHub) – Caesars Entertainment has reached an agreement to be acquired by Fertitta Entertainment in an all-cash deal valued at $17.6 billion. The transaction encompasses $11.9 billion in debt, Caesars’ casino properties, and its online and retail sportsbook operations.
Good to Know
- Fertitta Entertainment will provide Caesars shareholders with $31 in cash for every outstanding share.
- The agreement encompasses 53 hotel-casino properties and the Caesars sportsbook operations.
- Caesars executives, including Tom Reeg, Bret Yunker, and Anthony Carano, are anticipated to remain in their positions.
Tilman Fertitta has secured a deal for one of the most prominent casino groups in the United States. Fertitta Entertainment, which already has ties to Golden Nugget, the Houston Rockets, and multiple restaurant chains, will take Caesars private pending shareholder and regulatory approval.
The $31-per-share offer represents a 49% premium over Caesars’ unaffected share price from February 25. The Carano family, which holds approximately 5% of Caesars shares, will retain a portion of its investment in the new entity.
Caesars Deal Brings Casinos And Sports Betting Under Fertitta
Caesars provides Fertitta Entertainment with an extensive U.S. casino portfolio, a flagship Las Vegas Strip brand, and a nationwide digital gaming business. The company runs 53 hotel-casino properties, and Caesars Sportsbook provides mobile betting in over 20 U.S. states.
The digital assets also offer Fertitta scale beyond physical locations. Caesars’ online sportsbook and iGaming offerings will be combined with the Golden Nugget digital platform, granting the acquirer a more substantial online presence in the U.S. sports betting and online casino sectors.
Caesars stated that its existing leadership team will continue following the deal’s closure. CEO Tom Reeg, CFO Bret Yunker, President and COO Anthony Carano, and other top executives are expected to retain their roles.
The companies had previously considered a combination. Discussions were reported in February, and a potential merger was also explored in 2018.
Caesars presented the sale as a direct cash benefit for investors following a prolonged decline in its stock price. Caesars shares increased roughly 1.5% on Thursday morning after the agreement was announced, despite the stock losing nearly 70% of its value over the last five years.
“The Board of Directors of Caesars Entertainment has approved the transaction and recommends that Caesars shareholders adopt and approve the merger agreement,” the company stated. “The Board, after detailed consideration with the assistance of its outside financial and legal advisors, determined that the immediate cash premium offered by this transaction is compelling for Caesars shareholders, and its approval of this transaction underscores its commitment to drive and deliver value for shareholders.”
Upon completion, Caesars common stock will be delisted from the NASDAQ. The companies announced the combined network will feature 60 casino resorts within the Caesars Rewards program, offering guests more destinations within the expanded casino and hospitality group.
“Together, Caesars and Fertitta Entertainment have a shared commitment to operational excellence, customer service, and disciplined growth, with employees and guests remaining at the heart of the business,” Caesars said in its release.
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