Casino giant Caesars Entertainment announced Thursday it has agreed to be acquired by a company owned by hospitality billionaire Tilman Fertitta in a massive $17.6 billion transaction that will expand his entertainment holdings.
The acquisition will make the prominent Las Vegas Strip casino company a private entity and includes approximately $11.9 billion in debt that will be taken on, according to the announcement.
Stock prices for the casino company jumped 2.5% during premarket hours and have climbed roughly 16% since news of the potential deal first emerged in February.
Fertitta, who serves as the U.S. ambassador to Italy and San Marino and heads Fertitta Entertainment, has proposed paying $31 for each share — representing almost a 50% increase over the stock price before the deal became public knowledge.
Key leadership, including CEO Tom Reeg and CFO Bret Yunker, are anticipated to remain in their positions. The agreement features a “go-shop” provision lasting until July 11, giving Caesars the opportunity to explore and discuss other potential offers.
Fertitta Entertainment, which operates the Golden Nugget Hotel and Casinos along with the Houston Rockets basketball franchise, had previously contacted Caesars in 2018 regarding a possible merger with his gaming operations, according to earlier reports.
His restaurant and hospitality business encompasses more than 600 locations spanning 36 states and over 15 nations, featuring popular dining chains like Rainforest Café and Bubba Gump Shrimp.
Caesars merged with competitor Eldorado Resorts in 2020, creating one of America’s largest casino and entertainment corporations — a transaction initiated after activist investor and billionaire Carl Icahn acquired shares and advocated for a company sale.
The company operates more than 50 gaming facilities throughout North America, including properties like Caesars Palace, Harrah’s and Eldorado. It also manages retail and digital sports betting platforms.
Caesars is experiencing increased challenges as declining Las Vegas tourism — its primary revenue source — reduces income from its resorts, hotels and gaming venues, while its digital betting division lags behind major competitors like FanDuel and DraftKings amid intensifying market competition from prediction platforms.
