A Texas billionaire has emerged as the leading candidate to buy one of the Strip’s largest casino companies, according to a new report.
Tilman Fertitta has been in exclusive talks to purchase Caesars Entertainment Inc. for $7 billion after beating a competing offer from Carl Icahn’s investment firm, the Wall Street Journal reported Wednesday. The WSJ’s unnamed sources said Fertitta’s company, Fertitta Entertainment, has been discussing paying around $34 a share for the casino operator.
Caesars Entertainment’s stock jumped nearly 12 percent to $29.08 per share after the WSJ story appeared Wednesday afternoon. At the close of the market Thursday, Caesars Entertainment’s stock price was $28.41, resulting in a market capitalization of roughly $5.9 billion.
Caesars Entertainment has a reported debt load of $11.9 billion, which does not account for long-term lease payments on multiple casino properties across the country, including Caesars Palace and Harrah’s in Las Vegas.
Similar to a Financial Times story in February, which first reported on the potential sale, the WSJ’s sources said no sale announcement is imminent, and it is possible that nothing will happen between the two parties.
Caesars Entertainment was also approached with an all-cash bid of roughly $33 a share from Icahn Enterprises. Caesars Entertainment has not yet formally turned down that offer, according to the WSJ.
Caesars Entertainment was acquired by Reno-based Eldorado Resorts Inc. in 2020 for $17.3 billion. The resulting entity retained the Caesars brand.
Fertitta is currently the U.S. ambassador to Italy and San Marino. His hospitality empire includes several Golden Nugget casino hotels in Nevada, multiple restaurant brands under the Landry’s Inc. umbrella and being the largest single shareholder of Wynn Resorts Ltd. He is the also the owner of the NBA’s Houston Rockets. Fertitta is a cousin of Lorenzo and Frank Fertitta III, who run Red Rock Resorts and Station Casinos.
Caesars operates more than 50 properties under its Caesars, Harrah’s, Eldorado and Tropicana brands. Its shares, and those of other gambling operators, have slipped in recent months as investors weigh the potential competitive threat posed by prediction platforms, such as Polymarket and Kalshi.
Some prospective bidders had assumed that any acquisition would hinge on approval from Vici Properties Inc, the real-estate investment trust spun off during Caesars Entertainment’s 2017 bankruptcy and now one of its largest landlords. But people familiar with the matter said the proposals from Fertitta and Icahn Enterprises are structured to allow Caesars Entertainment to be divided without Vici’s signoff, according to the WSJ.
Contact David Danzis at [email protected] or 702-383-0378. Follow @AC2Vegas_Danzis on X.
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‘ Some details of this article were extracted from the following source www.reviewjournal.com ’
