Tilman Fertitta Reportedly in Talks to Buy Caesars Entertainment in $7B Deal

According to The Wall Street Journal, billionaire Tilman Fertitta has been in talks to buy Caesars Entertainment for around $7 billion after beating out an offer from fellow billionaire Carl Icahn's firm. 

The Journal reports that they discussed paying about $34 per share. This past Tuesday, Caesars closed at $26.01 per share, giving the company a valuation of about $5 billion. 

No Deal Is Imminent, and Caesars Hasn’t Rejected Icahn

It's worth pointing out that, according to the Journal, this isn't a guarantee that a deal will get done, and it's possible these talks don't land in a deal. 

That said, Caesars recently received an all-cash offer from Icahn Enterprises at $33 per share. While Fertitta is in talks, Caesars hasn't officially said no to Icahn. 

Fertitta Entertainment owns the Houston Rockets, Golden Nugget Casino and Hotels, and the restaurant giant Landry's. 

More Details About the Deal and Caesars 

Caesars, as a company, operates more than 50 resorts under the brands Caesars, Harrah's, Eldorado, and Circus Circus. The Journal reports that Caesars' shares have been slowing due to the rise of prediction markets like Polymarket and Kalshi. 

Additionally, there's Vici Properties, a real estate investment fund spun off during Caesars' bankruptcy in 2017. This was viewed as a potential "roadblock" for a deal, the Journal added. 

The Journal also reported that people familiar with the matter said potential buyers who wanted to "split off the company’s digital gaming business had assumed that any deal would require Vici’s signoff."

That said, the deals proposed by Fertitta and Icahn Enterprises would be structured to split off the company without Vici's consent. 

Caesars' shares had been down about 40% over the past year, but when news broke that Fertitta was jumping in, the shares closed up nearly 19% on the day the story broke. 

In 2008, Caesars became private after a leveraged buyout led by Apollo Global Management and TPG. With that, the Journal also said that "Caesars’ operating unit emerged from bankruptcy in 2017, after having been saddled with debt from that deal."

Icahn has held a stake in Caesars since 2019 and has pushed for its sale. Eldorado Resorts acquired it in 2020, and Tom Reeg was named CEO of the combined company.