Fertitta, the entertainment company behind Las Vegas’ Golden Nugget casino and restaurant chains including Rainforest Cafe and Morton’s, is purchasing Caesars Entertainment in a nearly $6 billion deal.
The casino company gained legendary status following the 1966 launch of Caesar’s Palace on the Las Vegas Strip, though the business traces its origins to 1930s Reno, Nevada.
Under the acquisition terms, Fertitta Entertainment will provide $5.7 billion in cash while assuming nearly $12 billion of Caesars’ existing debt, bringing the complete transaction value to approximately $17.6 billion.
The purchase agreement includes a provision allowing Caesars to solicit alternative offers until July 11.
Shareholders of Caesars will receive $31 per share in cash, representing a 49% increase above the stock price before acquisition discussions surfaced in February.
Caesars Entertainment Inc. stock, which has climbed 15% since merger speculation began, gained nearly 2% in pre-market trading Thursday.
