One of the biggest names in the casino business will be cashing out their chips and turning over a trio of Atlantic City properties to a buyer that already owns a Garden State casino.
Caesars Entertainment has announced a definitive agreement to be acquired by Fertitta Entertainment in an all-cash transaction valued at approximately $17.6 billion. The deal includes Fertitta assuming approximately $11.9 billion of Caesars’ outstanding debt.
The transaction would encompass Caesars properties around the globe, including three in Atlantic City: Caesars Atlantic City, Harrah’s Resort Atlantic City, and Tropicana Atlantic City. The Board of Directors of Caesars Entertainment has approved the transaction and has already recommended that shareholders adopt and approve the merger agreement.
The buyers, Fertitta Entertainment, own various entities, including the NBA’s Houston Rockets franchise. They also own the Golden Nugget in Atlantic City, meaning their potential purchase of Caesars’ assets would give them control over four of the nine casinos in the seaside town.
The proposed transaction is not subject to a financing condition, as it will be financed through a combination of equity contributed by Fertitta Entertainment, assumed Caesars’ debt, and new committed debt financing arranged by a group of 10 banks. Upon completion of the transaction, shares of Caesars Entertainment common stock will no longer be listed on NASDAQ.
The agreement includes a “go-shop” period through July 11, 2026, during which time Caesars and its financial and legal advisors may consider and negotiate alternative acquisition proposals from other companies. An estimated timeline for when the transaction could go through has not been announced.
The Wall Street Journal reported in March that Fertitta was in talks to buy Caesars for about $7 billion, with Carl Icahn’s casino group also making a competing bid.
Caesars says the transaction positions it to continue executing the strategy that has made it the leading casino-entertainment company in the United States.
The combined company will offer guests an even broader array of destinations and experiences, all connected by the Caesars Rewards loyalty network, including 600 Fertitta entertainment outlets, Landry’s full-service restaurants, and multiple amusement, entertainment, and aquarium venues owned by Fertitta.
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‘ Some details of this article were extracted from the following source jerseydigs.com ’
