Caesars Entertainment Inc., based in Paradise, Nevada, agreed on May 28 to a definitive agreement to be acquired by Houston’s Fertitta Entertainment Inc. in an all-cash transaction valued at approximately $17.6 billion, including the assumption of $11.9 billion of Caesars’ outstanding debt. The board of directors of Caesars Entertainment approved the transaction and recommends that Caesars shareholders adopt and approve the merger agreement.
Fertitta Entertainment brings a proven operating model with a track record of successfully integrating and growing leading hospitality and entertainment businesses, including Golden Nugget Casinos; Montage Laguna Beach in California; The Post Oak Hotel in Houston; The San Luis Resort, Spa & Conference Center in Galveston, Texas; Morton’s The Steakhouse; Landry’s Seafood House; Bubba Gump Shrimp Co.; and many more. Caesars is the largest gaming company in the U.S., including casinos branded as Caesars Palace, Harrah’s, Horseshoe, Eldorado, and Tropicana.
The transaction positions Caesars to continue executing on the strategy that has made it the leading casino-entertainment company in the U.S. Caesars Entertainment CEO Tom Reeg, Chief Financial Officer Bret Yunker, President and Chief Operating Officer Anthony Carano, and other members of the corporate management team and property-level management and personnel are expected to remain in their roles and continue to lead the Caesars Entertainment operations at the combined company under Fertitta Entertainment.
The combination of Caesars and Fertitta Entertainment brings together two iconic and highly complementary platforms to create a dynamic suite of gaming, entertainment, and restaurant brands. The combined company will offer guests and event attendees an even broader array of destinations and experiences, all connected by the Caesars Rewards loyalty network. On a combined basis, guests and attendees will enjoy access to an expansive suite of diversified offerings—60 casino resorts and gaming facilities; online gaming including sports betting, iCasino, and Poker through Caesars’ leading digital platform; retail sports betting at over 200 third-party locations through the William Hill brand; and over 600 Fertitta Entertainment outlets, including Landry’s full-service restaurants, plus multiple amusement, entertainment, and aquarium venues.
The agreement includes a “go-shop” period through July 11, during which time Caesars and its financial and legal advisors may solicit, consider, and negotiate alternative acquisition proposals from third parties. Prior to a vote of the shareholders of Caesars, the Caesars board of directors has the right to cause the company to terminate the agreement with Fertitta Entertainment in order to enter into an alternative transaction providing for a superior proposal, subject to the terms and conditions of the definitive agreement. Caesars does not intend to disclose updates on this process unless and until it determines that such disclosure is appropriate or required.
