Fertitta Entertainment Buys Caesars for $17.6 Billion, Taking Strip Casino Giant Private
Updated
Updated · CNBC · May 28
Fertitta Entertainment Buys Caesars for $17.6 Billion, Taking Strip Casino Giant Private
5 articles · Updated · CNBC · May 28
$17.6 billion is the value of Fertitta Entertainment's takeover of Caesars Entertainment, including about $11.9 billion in assumed debt, in a deal that would remove the casino operator from public markets.
$31 a share is Fertitta's offer, nearly 50% above Caesars' price before the deal surfaced in February and about 8% above Wednesday's close; the stock rose 2.5% premarket.
Caesars entered talks under pressure from weaker Las Vegas visitation, which has hurt resort and casino revenue, while its online betting arm trails FanDuel and DraftKings and faces new competition from prediction markets.
July 11 is the deadline for Caesars' go-shop period, though CEO Tom Reeg and CFO Bret Yunker are expected to stay on if the acquisition closes.
More than 50 Caesars casinos across North America would join Fertitta's broader empire of 600-plus hospitality properties, a combination likely to draw regulatory scrutiny.
Will Fertitta's buyout build a new Caesars empire or dismantle its iconic casinos and brands?
Is the 49% premium a final offer, or will a surprise bidder emerge before the July deadline?
Can a US ambassador close a $5.7 billion casino deal without a major conflict of interest?