Warning: Undefined array key "post_type_share_twitter_account" in /var/www/vhosts/casinonewsblogger.com/public_html/wp-content/themes/cryptocurrency/vslmd/share/share.php on line 24
Caesars Entertainment has extended the period of exclusive talks for an $18 billion takeover proposal by billionaire Tilman Fertitta, Bloomberg News reports, citing people familiar with the discussions.
Fertitta, the United States ambassador to Italy and San Marino and owner of Fertitta Entertainment, has offered $32 per share for the Las Vegas-based company and would assume more than $11 billion in Caesars’ debt. Shares of Caesars rose 2.1% to $27.80 following the report.
The proposed financing package includes $2 billion to $3 billion in equity and $4 billion to $5 billion in new borrowing against the company’s assets, the report said.
Fertitta plans to combine Caesars with his existing businesses, including Landry’s and Golden Nugget Hotel and Casinos, creating a larger casino group.
Caesars has been hit by declining visitation to Las Vegas, weighing on revenues across the city’s resorts, hotels, and casinos. The company has also struggled to compete in online betting against larger rivals such as FanDuel and DraftKings.
Fertitta had previously approached Caesars in 2018 about a potential merger with his gaming business. His company operates more than 600 properties across over 15 countries, including restaurant brands such as Rainforest Café and Bubba Gump Shrimp, and also owns the NBA team Houston Rockets.
Meanwhile, Caesars operates more than 50 casinos across North America, including Caesars Palace, Harrah’s, and Eldorado, and also runs a retail and online sports betting app.
Reports of exclusive talks between Fertitta and Caesars first emerged in March, when The Wall Street Journal reported that Fertitta Entertainment had topped a competing offer from investor Carl Icahn’s firm.
Caesars shares had fallen roughly 40% over the past year before takeover interest surfaced. The company was taken private in 2008 in a leveraged buyout led by Apollo Global Management and TPG, and its operating unit emerged from bankruptcy in 2017. Eldorado Resorts later acquired Caesars in 2020, with Caesars Chief Executive Tom Reeg becoming CEO of the combined company.