Caesars Extends Exclusive Talks On Tilman Fertitta Takeover Bid

Caesars Entertainment is still in deal talks with Tilman Fertitta. The latest report says both sides extended the exclusive discussion period around a proposal that would value the company at about $18 billion including debt.

Good to Know

• Fertitta has offered $32 per share and would take on more than $11 billion in Caesars debt.
• Caesars stock rose 2.1% to $27.80 after the latest report.
• Earlier reports said Fertitta topped a rival bid from Carl Icahn and entered exclusive talks in March.

Caesars Keeps Fertitta Bid Alive

Caesars has given Fertitta more time. Bloomberg, cited by Reuters, said the exclusive talks around his takeover approach have been extended, keeping alive a deal that would put Caesars together with Landry’s and Golden Nugget Hotel and Casinos under one larger casino and hospitality group.

The proposal centers on $32 per share. Fertitta would also assume more than $11 billion in debt, while the financing package reportedly includes $2 billion to $3 billion in equity and another $4 billion to $5 billion in fresh borrowing backed by company assets.

Pressure on Caesars helps explain why interest around a sale has stayed active. The operator has dealt with softer Las Vegas visitation and has had a harder time in online betting, where FanDuel and DraftKings keep wider scale. Reuters also reported last month that Caesars had posted net losses for four straight quarters as takeover interest picked up.

Fertitta has looked at Caesars before. He approached the company in 2018 about combining his gaming business with the group. His wider business now spans more than 600 properties in over 15 countries, along with restaurant brands such as Rainforest Café and Bubba Gump Shrimp, plus ownership of the Houston Rockets. Caesars, for its part, runs more than 50 casinos across North America and controls brands including Caesars Palace, Harrah’s, and Eldorado, along with retail and online sports betting operations.

The road to a final agreement is still open, not closed. March reporting said Fertitta had beaten an offer from Icahn and entered exclusive talks, although Reuters later cited CNBC saying the equity value under discussion was about $6.5 billion while enterprise value reached roughly $31.5 billion once debt was included. No final deal is guaranteed.

Earlier in April, Fertitta bought WNBA franchise Connecticut Sun from the Mohegan tribe for $300 million.