Caesars Entertainment weighing takeover bid, Financial Times studies | Casinos & Gaming

One of the Strip’s largest on line casino operators may be attracting consideration from potential patrons, a brand new report suggests.

Caesars Entertainment Inc. is weighing takeover presents, together with a doable management-led buyout, in line with a Thursday story from the Financial Times. Caesars Entertainment is “exploring a sale after receiving takeover interest from several possible bidders,” amongst them Texas billionaire Tilman Fertitta, the FT reported.

On Friday, a Caesars Entertainment spokesperson stated the corporate wouldn’t touch upon market hypothesis or rumors. Fertitta’s public relations group didn’t instantly reply to a request for remark.

The FT report famous that talks had been ongoing, and nothing had been finalized.

Caesars Entertainment’s inventory worth surged greater than 19 p.c after the shut of buying and selling Thursday following the FT story. At closing Friday, the inventory worth was $25.05 per share, up $3.80 per share because the begin of the week.

The firm’s share worth is down practically 73 p.c during the last 5 years. Its present market capitalization of $5.1 billion and reported debt load of $11.9 billion ends in an enterprise worth of $17 billion.

That complete doesn’t account for long-term lease funds on a number of on line casino properties throughout the nation, together with Caesars Palace and Harrah’s in Las Vegas. Caesars Entertainment owns the opposite six Strip on line casino properties in its portfolio.

Any potential acquisition of Caesars Entertainment would doubtless require vital financing from Wall Street banks, in line with the FT’s unnamed sources.

Caesars Entertainment was acquired by Reno-based Eldorado Resorts Inc. in 2020 however retained the Caesars model. Its present board contains representatives tied to activist investor Carl Icahn, who pushed for strategic modifications on the firm earlier than the Eldorado deal.

Fertitta, the named potential bidder, is presently the U.S. ambassador to Italy and San Marino. Fertitta’s hospitality empire contains a number of Golden Nugget on line casino motels in Nevada and the biggest single shareholder stake in Wynn Resorts Ltd. He is a cousin of Lorenzo and Frank Fertitta III, who run Red Rock Resorts and Station Casinos.

Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.