Caesars Agrees to Near-$18 Billion Sale to Fertitta Entertainment

Caesars Entertainment announced on Thursday it had entered a $17.6 billion all-cash sale agreement with billionaire Tilman Fertitta’s Fertitta Entertainment, Inc.

The announcement comes after the entities had held exclusive negotiation periods during the spring. Under the terms of the agreement, Fertitta will acquire all of Caesars’ approximate $11.9 billion in outstanding debt and will pay shareholders $31 cash for each share.

Caesars’ Board of Directors already approved the transaction and recommended that shareholders approve the deal.

Caesars changing control

Fertitta, who already owns the Golden Nugget casino brand, is on the verge of taking over one of the largest casino, gaming, and hospitality brands in the world. 

Caesars’ stock price was up as high as $29.43 (2.3 percent) on Thursday morning and is up 0.8 percent at the time of writing. The price is also up roughly 16 percent since talks between Fertitta and Caesars were first reported in February. 

The announcement confirming the sale agreement did not include remarks from officials or spokespeople from any of the entities involved. It did, however, assert that Caesars’ Board found the cash premium offered by the $31 value per share to be "compelling" for shareholders.

It also noted Fertitta Entertainment’s track record of success in various avenues of business, including hospitality and entertainment.

The agreement includes a “go-shop” period that expires on July 11, during which Caesars and its advisors may negotiate acquisition proposals from third parties. If a more enticing deal is reached, Caesars holds the right to terminate its arrangement with Fertitta Entertainment. 

Caesars also is not required to keep Fertitta Entertainment informed on its alternative proposal negotiations.

That’s a pretty big deal

Assuming the sale to Fertitta Entertainment is finalized, there are plans to keep Caesars Entertainment’s Chief Executive Officer, Tom Reeg, Chief Financial Officer, Bret Yunker, and President and Chief Operating Officer, Anthony Carano in their current positions. Other members of the corporate and property management teams will also be expected to stay in their roles.

“Caesars and Fertitta Entertainment have a shared commitment to operational excellence, customer service, and disciplined growth, with employees and guests remaining at the heart of the business,” the announcement stated.

Customers across the country will be connected through the Caesars Rewards network. This loyalty program will be active at 60 casino-resorts, online sportsbooks and online casinos, poker, retail sports betting, and Fertitta Entertainment outlets at locations such as restaurants. 

Fertitta, a heavy donor to President Donald Trump’s  2024 campaign and the current U.S. ambassador to Italy and San Marino, is expected to receive approval for the deal. 

Caesars would be the crown jewel in Fertitta’s portfolio, which already includes the NBA’s Houston Rockets, Golden Nugget, and more entities. 

Despite its global presence, Caesars has encountered roadblocks recently. Its online sports betting operation fell far behind market leaders FanDuel, DraftKings, and BetMGM, and it ceded ground to the fast-rising Fanatics. 

Tourism and visitation are also down in Las Vegas, limiting the number of filled seats on casino gaming floors.