Fertitta Entertainment Acquires Caesars: A $6 Billion Entertainment Deal

Fertitta Entertainment Strikes $17.6 B Deal to Acquire Caesars 

Caesars became an iconic name after the opening of Caesar’s Palace on the Las Vegas Strip in 1966. However, its roots date back to the 1930s in Reno, Nevada.

Fertitta Entertainment will pay $5.7 billion and take on close to $12 billion in debt from Caesars, putting the total value of the deal at about $17.6 billion.

As part of the agreement, Caesars can seek competing bids through July 11.

Caesars investors will get $31 in cash for each share they own, a 49% premium over the share price before chatter about a possible tie-up between the two entertainment companies began in February.

Shares of Caesars Entertainment Inc., which are up 15% since merger rumors emerged, rose almost 2% before the opening bell Thursday.

Caesars faces mounting pressure as fewer visitors to Las Vegas — its core market — dent revenue at resorts, hotels and casinos, while its online betting arm trails larger rivals like FanDuel and DraftKings and faces growing competition from prediction markets.

Fertitta Entertainment Offers $31 Per Share in Bid for Caesars as Las Vegas Struggles

Tilman Fertitta, the U.S. ambassador to Italy and San Marino and owner of Fertitta Entertainment, offered $31 per share — a nearly 50% premium to the stock’s closing price before the deal was first reported and about 8% to its last close on Wednesday.

Fertitta Entertainment, owner of Golden Nugget Hotel and Casinos and the basketball team Houston Rockets, had approached Caesars in 2018 about a merger with its gaming empire, Reuters had reported.

Through his restaurant and hospitality company, Fertitta owns more than 600 properties across 15 countries, including casual dining brands such as Rainforest Café and Bubba Gump Shrimp.

Top executives, including CEO Tom Reeg and CFO Bret Yunker, are expected to stay on. The deal includes a “go-shop” period through July 11, allowing Caesars to weigh alternative proposals.

Caesars combined with smaller rival Eldorado Resorts in 2020 to form one of the biggest casino and entertainment companies in the United States — a deal set in motion after activist billionaire Carl Icahn built a stake a year before and pushed for a sale.

The company now controls more than 50 casinos across North America, including Caesars Palace, Harrah’s and Eldorado, and also runs a retail and online sports-betting app.

If completed, the acquisition would add Caesars’ vast footprint to Fertitta’s entertainment and hospitality empire, potentially drawing regulatory scrutiny.

Fertitta donated actively to Donald Trump’s 2024 campaign.

Caesars’ shares have largely trailed the broader market in last two years.