Tilman Fertitta In Talks To Buy Caesars Entertainment For $7B

Billionaire Tilman Fertitta has entered exclusive discussions to acquire casino operator Caesars Entertainment in a deal valued at about $7 billion, according to a report from The Wall Street Journal.

Good to Know

• Tilman Fertitta is discussing a $34 per share offer for Caesars Entertainment.
• Icahn Enterprises previously submitted a competing $33 per share proposal.
• Caesars operates more than 50 casino resorts worldwide.

Fertitta is negotiating through Fertitta Entertainment and has discussed paying roughly $34 per share for Caesars. The proposal represents a premium of about 31% compared with the company share price before takeover interest surfaced.

The Wall Street Journal said the talks remain ongoing and an agreement is not guaranteed.

Fertitta owns the Golden Nugget casino chain along with the Landry restaurant group and the Houston Rockets NBA franchise. A purchase of Caesars would greatly increase the scale of the casino operations connected to the Fertitta business portfolio.

Icahn Enterprises also submitted an all cash offer valued near $33 per share. Competition between the two proposals has driven investor attention toward Caesars stock.

Shares of Caesars climbed 12% on Wednesday to close at $29.07 in New York trading after the report.

Caesars operates more than 50 casino resorts under several brands including Caesars, Harrah, Eldorado, and Circus Circus.

Real estate investment trust Vici Properties acts as a major landlord for Caesars casino properties. Analysts previously considered the company a potential obstacle to a takeover. However, structures behind the Fertitta and Icahn proposals could allow a transaction without Vici approval, according to people familiar with the talks.

Leadership at Caesars may remain involved under either proposal. Chief executive Tom Reeg could play a role in a transaction if negotiations advance.

Interest in the casino company follows a period of stock weakness. Caesars shares declined roughly 40% over the past year before takeover speculation began.

Caesars previously went private in a leveraged buyout led by Apollo Global Management and TPG in 2008. The operating unit later exited bankruptcy during 2017 restructuring.

Eldorado Resorts acquired Caesars during 2020 and Tom Reeg became chief executive of the combined company.

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