Tilman Fertitta to Acquire Caesars Entertainment in $5.7 Billion Deal

In March, billionaire Tilman Fertitta, the owner of Fertitta Entertainment, which owns the Houston Rockets, Golden Nugget Casino and Hotels, and a restaurant chain called Landry's, was rumored to be in the running to purchase Caesars Entertainment for around $7 billion. 

Now, according to The Wall Street Journal, the deal will be for $5.7 billion. 

When it's all said and done, Fertitta Entertainment will pay Caesars shareholders $31 per share and assume $11.9 billion of Caesars' debt. 

As a result, the share of Caesars was up 1.5% in premarket trading. 

Also, as mentioned, when Fertitta entered the running for Caesars Entertainment, his competitor for the company was an offer from billionaire investor Carl Icahn's firm. 

Fertitta Expands His Gaming and Hospitality Portfolio

Now, along with the Rockets, Landry's, and Golden Nugget, Fertitta now adds more than 50 resorts to his portfolio. 

The Journal is reporting that, per the companies, the deal will be funded through Fertitta equity, assumed Caesars debt, and debt financing from a group of 10 banks. 

With this deal, the Caesars board of directors has signed off on it and recommends that shareholders approve it. 

Even after Fertitta takes over, current management, such as Chief Executive Tom Reeg and Chief Financial Officer Bret Yunker, is expected to remain in their roles. 

Additionally, the Carano family holds about a 5% stake in Caesars and has agreed to roll a portion of their equity into the Fertitta-led business as part of this transaction. 

Caesars Shareholders Still Have a Decision Ahead

The Journal also states that this deal includes a "go-shop period" through July 11 to "solicit and consider alternative acquisition proposals."

Over the past year, Caesars shares have been down roughly 40%. In late February of this year, the Financial Times reported Fertitta had an interest in the company. On the day of that report, Caesars shares closed up nearly 19%.