Caesars Agrees to Be Acquired by Fertitta Entertainment in $17.6B Deal

Caesars Entertainment has officially confirmed that it has agreed to be acquired by billionaire Tilman Fertitta. The deal was talked about for months and is finally becoming a reality.

In its official announcement, Caesars confirmed that it has entered into a definitive agreement to be acquired by Fertitta Entertainment in a deal valued at a staggering $17.6 billion, including the assumption of $11.9 billion of Caesars’ outstanding debt.

Per the deal, Caesars shareholders will receive $31 in cash for each outstanding Caesars share – a price representing a 49% premium over Caesars’ price as of February 25, the day before the first rumors associated with the transaction. The price also represents a 46% premium over the unaffected 30-day volume-weighted average price as of that same date.

The transaction is not subject to a financing condition and will be financed through a combination of equity contributed by Fertitta Entertainment, assumed Caesars’ debt, and new committed debt financing arranged by a group comprising 10 banks.

Caesars elaborated that the arrangement has been approved by its board of directors, although its passing is subject to the approval of Caesars shareholders. The board therefore recommended that Caesars shareholders approve the merger, saying that the cash premium is “compelling for Caesars shareholders.” The Carano family, which owns a 5% stake in the casino company, has already agreed to roll a portion of their equity interests into Fertitta Entertainment.

Once the deal closes, Caesars’ common stock will no longer be traded on NASDAQ.

As mentioned, the Fertitta acquisition of Caesars has been something that has been talked about for a while. Caesars emphasized that Fertitta Entertainment’s impressive track record in hospitality and entertainment made it a perfect fit for Caesars.

The transaction positions Caesars to continue executing on the strategy that has made it the leading casino-entertainment company in the United States. Together, Caesars and Fertitta Entertainment have a shared commitment to operational excellence, customer service, and disciplined growth, with employees and guests remaining at the heart of the business.

Caesars statement

Caesars added that most of its C-suite and management are expected to remain in place following the acquisition.

Once the two businesses are combined, guests will enjoy access to what Caesars called an “expansive suite of diversified offerings.” This will include 60 casino resorts and gaming facilities, iGaming and online betting, retail sportsbooks, online poker, more than 200 third-party William Hill locations, and over 600 Fertitta Entertainment outlets.

However, the transaction isn’t fully set in stone yet, as the deal includes a go-shop period through July 11, during which Caesars could consider third-party acquisition proposals.