Caesars Entertainment is being acquired by Fertitta Entertainment in a deal valued at $17.6 billion.
On Wednesday, resort operator Caesars Entertainment entered into a definitive merger agreement with American hospitality, dining and gaming conglomerate Fertitta Entertainment, according to a filing with the U.S. Securities and Exchange Commission. In an all-cash transaction, Fertitta Entertainment will pay roughly $5.7 billion to acquire Caesars, also taking on approximately $11.9 billion of Caesars’ outstanding debt, bringing the deal’s total value to $17.6 billion, a Thursday news release detailed.
Through the agreement, Caesars shareholders would receive $31 in cash for each outstanding Caesars’ share, representing a 49% premium over Caesars’ unaffected share price as of Feb. 25, per the release. Caesars shareholders must approve of the deal for it to close.
The combination would bring together two “iconic and highly complementary platforms,” per the release, including Caesars’ eight locations on the Las Vegas Strip: Caesars Palace, Harrah’s, Paris Las Vegas, Planet Hollywood, Horseshoe, The LINQ Hotel, Flamingo and The Cromwell. Meanwhile, Fertitta Entertainment brings Golden Nugget Hotels & Casinos and its Landry’s restaurant brand to the table.
The combined company would offer 60 domestic casino resorts and gaming facilities; online gaming, including sports betting, iCasino and Poker, through Caesars’ digital platform; retail sports betting; and more than 550 Fertitta Entertainment outlets, including some 450 Landry’s full-service restaurants.
The deal would also join the companies’ loyalty programs, including Caesars Rewards, Golden Nugget’s 24 Karat Select Club and Landry’s Select Club.
The leadership teams of both companies are expected to remain in place, leading the combined companies’ operations, per the release. Tom Reeg is CEO of Caesars, while Tilman Fertitta is the CEO of Fertitta Entertainment.
The transaction is also subject to the satisfaction of customary closing conditions, including certain regulatory approvals, per the release.
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‘ Some details of this article were extracted from the following source www.hoteldive.com ’
