Caesars Entertainment to be bought by Fertitta Entertainment in $17.6 billion deal

The casino elephantine Caesars Entertainment (CZR) is acceptable to beryllium acquired by Fertitta Entertainment, a conglomerate with holdings chiefly successful the hospitality industry, successful a $17.6 cardinal all-cash deal, including $11.9 cardinal successful Caesars debt.

Caesars banal roseate 2% successful premarket trading connected Thursday arsenic investors assessed an offering that volition make a “dynamic hospitality institution crossed manufacture starring iconic gaming, integer and edifice platforms,” per the Caesars property release.

Fertitta volition wage Caesars shareholders $31 per stock successful cash, the companies announced Thursday morning, offering shareholders a 7.7% premium implicit wherever the banal closed trading connected Wednesday. The woody includes a “go-shop” play done July 11, during which Caesars tin reappraisal different offers.

A tie-up betwixt Caesars and Fertitta would harvester 60 casino resorts and gaming facilities, a swath of online gaming and sports betting options, much than 600 Fertitta outlets, and a big of amusement, entertainment, and aquarium assets, according to the announcement.

Caesars CEO Tom Reeg, CFO Bret Yunker, and COO Anthony Carano are each expected to stay successful their roles and proceed to negociate Caesars’ operations wrong the combined company, Caesars said Thursday. The Carano casino-mogul family, which owns astir 5% of Caesars, volition rotation a information of its equity involvement into Fertitta.

Houston existent property person Tilman Fertitta has long pursued a merger between Caesars and his ain Fertitta Entertainment, Bloomberg reported. If the woody goes through, it would harvester Caesars web of casino properties with Fertitta’s Landry’s restaurants and Golden Nugget properties.