Caesars Entertainment contemplating takeover gives; Tilman Fertitta might bid: report — CDC Gaming

The Financial Times reported Thursday that Caesars Entertainment is weighing takeover gives and cited a possible bid from Texas billionaire Tilman Fertitta, who at present is serving as U.S. ambassador to Italy. The publication mentioned the information units the stage “for a potential buyout of one of the jewels of the Las Vegas Strip.”

The Financial Times report mentioned Caesars is exploring a sale “after receiving takeover interest from several potential bidders, including Fertitta Entertainment, the group behind the Golden Nugget casino chain.”

The story additionally mentioned Caesars is contemplating a attainable management-led buyout as nicely.

“Talks are ongoing, but a transaction is far from a foregone conclusion, the people cautioned. It is possible the talks could collapse,” the story famous in citing sources.

Caesars and Fertitta didn’t return calls to remark. Fertitta is a significant shareholder in Wynn Resorts.

“In order to cover the huge debt and lease liabilities facing Caesars, any acquisition would likely involve a large financing package from Wall Street banks, which would make the likelihood of a deal materializing much trickier,” the Financial Times article mentioned.

Shares of Caesars inventory jumped from $21.72 to a detailed of $24.74 after the Financial Times story broke Thursday afternoon. The inventory is down $8.51 over the past yr, with a 52-week excessive of $34.68 and low of $17.86. The firm has a market cap of greater than $5 billion.

Caesars, which was acquired by Eldorado Resorts in a 2020 merger of the 2 teams, has a debt load of greater than $20 billion, together with lease funds, giving it an enterprise worth above $30 billion, the Financial Times reported.

“If a deal materialises, it would mark one of the biggest gaming takeovers in years,” the publication famous. “Caesars’ annual free cash flow of more than $3 billion makes the company an attractive asset to any potential buyer, the people said. Caesars’ recent struggles have for the second time drawn the attention of Wall Street’s most famed activist investor Carl Icahn. Its board was expanded last year to add two representatives from Icahn Enterprises as part of a brokered peace with him.”

The publication cited that Icahn sought out a change of technique at Caesars in 2019, a transfer that helped precipitate the Eldorado transaction.

The Financial Times famous that the Reno-based operator is led by CEO Tom Reeg, a one-time junk bond dealer.

Caesars operates greater than 50 casinos throughout North America, utilizing the Caesars, Harrah’s, Horseshoe, and Eldorado manufacturers.

Private fairness teams Apollo and TPG purchased the corporate, then often called Harrah’s, in 2008 for $30 billion, simply as the worldwide monetary disaster was starting, the story famous. In 2015, Caesars filed for chapter.

As a part of the restructuring, Caesars properties had been spun off to Vici, with the operator leasing them again.

“A surge in interest in gaming stocks during the COVID-19 pandemic, as gamblers were spending heavily online while stuck at home, boosted Caesars’ market value to roughly $24 billion, but it has since fallen more than 80% from its highs,” the story mentioned.

In its fourth quarter earnings report earlier this month, Caesars reported positive factors in internet income and adjusted earnings led by a robust displaying in its digital section.

In the fourth quarter, Caesars reported internet revenues of $2.9 billion versus $2.8 billion for the comparable prior-year interval. Las Vegas income fell 3.4% from $1.08 billion to $1.04 billion. Regional income rose 4% from $1.34 billion to $1.39 billion.

Same-store adjusted EBITDA was $901 million versus $882 million for the comparable prior-year interval. It fell 6.5% in Las Vegas and 1.5% at regional properties.

The CEO of Caesars Entertainment mentioned Tuesday there’s “no crisis” on the Las Vegas Strip, which he claims is holding up “quite well,” and that the fourth-quarter enchancment, a top-four outcome within the firm’s historical past, is continuous into the primary quarter, auguring nicely for 2026.

Reeg instructed Wall Street analysts through the earnings name that Caesars is coming off a mushy summer time in Las Vegas, because of a decline in leisure journey. It stays mushy, however isn’t as pronounced because it was over the summer time.

Group enterprise helped fill within the fourth quarter, and Reeg expects that to offset leisure journey within the first quarter. Group enterprise picks up much more within the second quarter, and he mentioned he feels good about the remainder of the yr. The one unknown is how leisure journey will shake out through the summer time, contemplating that was the difficulty in 2025.

What’s taking place in Las Vegas with a 7.5% decline in visitation in 2025 is a “normal economic cycle activity in leisure,” Reeg mentioned. Drive-in site visitors from California was down in 2025, as folks stayed nearer to residence, and visitation from Canada was down.