One company will control four of the nine casino properties in Atlantic City, New Jersey, after an acquisition deal announced Thursday.
Fertitta Entertainment will pay $5.7 billion to acquire Caesars Entertainment, which owns Harrah’s, the Tropicana and Caesars Atlantic City.
Fertitta already owns Golden Nugget Atlantic City, so the combined company will control a total of four casino hotels at the Jersey Shore. They will also control Harrah’s Philadelphia Casino & Racetrack in Chester.
Fertitta will 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.
Billionaire Houston Rockets owner and U.S. Ambassador to Italy Tilman Fertitta is the namesake of Fertitta Entertainment.
History of Caesars Entertainment
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.
Caesars opened its Atlantic City hotel and casino in 1979, and was the second casino to open in town.
The company was bought by Harrah’s in 2005 and the combined company later went private before changing its name to Caesars Entertainment Corporation, which had more brand recognition. The combined company went public in 2012 and was later acquired by Eldorado Resorts in 2020.
This latest deal is subject to approval from regulators and Caesars shareholders.
If approved, 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.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.cbsnews.com ’
