Reading this on Krawl? Register for free.
Unlock listen-aloud, reading history and personalised feeds — at zero cost.
Free registration unlocks the full Finance Desk
Fertitta Moves to Acquire Caesars for $5.7B, Assuming $11.9B Debt
Tilman Fertitta's proposed acquisition of Caesars Entertainment includes a $5.7 billion cash component and the assumption of $11.9 billion in existing debt. Fertitta Entertainment will pay Caesars shareholders $31 per share.
Billionaire Tilman Fertitta has reached an agreement to acquire Caesars Entertainment for an implied valuation of $17.6 billion USD. Fertitta Entertainment, his company, will pay Caesars shareholders $31 per share in cash and assume $11.9 billion USD of the casino operator's outstanding debt. This announcement led to a 1% increase in Caesars' share price on Thursday.
Fertitta had previously engaged in discussions to purchase Caesars for around $7 billion USD, as reported by The Wall Street Journal in March, fending off a competing offer from investor Carl Icahn. The acquisition would integrate Caesars' more than 50 resorts into Fertitta's portfolio, which already includes the Golden Nugget casino chain, other hospitality and gaming assets, Landry's restaurant company, and the NBA's Houston Rockets.
Funding for the deal comes from Fertitta equity, the assumption of Caesars debt, and debt financing from a consortium of 10 banks. Caesars' board of directors has approved the sale and recommended shareholder approval. The agreement includes a go-shop provision until July 11, allowing Caesars to solicit and consider alternative acquisition proposals. Caesars shares had fallen 40% over the year before news of takeover interest emerged in February. They closed up nearly 19% on the day of the report.
Found this useful? Share it!
Interested in Finance Education?
Explore our CFA and investing courses — built for serious learners.
