Billionaire Tilman Fertitta’s firm is buying one of the most recognized Las Vegas brands.
Key Takeaways
- Fertitta agrees to pay shareholders $31 per share.
- Caesars’ executive structure will remain in place.
- The buyer will assume $11.9 billion in Caesars’ debt.
Caesars Entertainment announced Thursday that the gaming and hospitality company entered a sale agreement with Fertitta Entertainment for an all-cash transaction worth $17.6 billion, which includes $11.9 billion in Caesars’ outstanding debt.
Caesars Entertainment CEO Tom Reeg, CFO Bret Yunker, president and COO Anthony Carano, and other company executives are expected to remain in their current positions. Fertitta Entertainment will own all of Caesars’ 53 hotel-casino properties as well as the operator’s online and retail sportsbooks. Caesars operates mobile wagering in more than 20 U.S. states.
The two sides reportedly entered discussions in February. There was also talk of a merger in 2018. Fertitta, the U.S. ambassador to Italy and San Marino, also owns the Las Vegas gaming brand Golden Nugget, the Houston Rockets, and multiple restaurant chains.
Enjoying Covers content? Add us as a preferred source on your Google account
Business terms
Caesars said Fertitta will offer shareholders $31 in cash for each outstanding share, a 49% premium on the stock’s price as of Feb. 25. The Carano family’s 5% of Caesars’ shares will roll over a portion of their stake.
“The Board of Directors of Caesars Entertainment has approved the transaction and recommends that Caesars shareholders adopt and approve the merger agreement,” the selling company stated. “The Board, after detailed consideration with the assistance of its outside financial and legal advisors, determined that the immediate cash premium offered by this transaction is compelling for Caesars shareholders, and its approval of this transaction underscores its commitment to drive and deliver value for shareholders.”
Caesars stock was up about 1.5% on Thursday morning after the agreement was announced, but the shares have fallen nearly 70% over the last five years. Shares of common stock won’t be listed on the NASDAQ after the completion of the deal, which is still awaiting final approval.
Merging mutual interests
The acquisition comes at a time when Las Vegas visitation has significantly declined. The gambling Mecca saw a 7.5% dip in year-over-year tourism in 2025. Caesars owns some of the most iconic properties on the famed Las Vegas Strip, including Caesars Palace, the Flamingo, and Planet Hollywood.
The two companies say the joint venture merges two “iconic and highly complementary platforms,” and guests will experience a broader array of destinations through the Caesars Rewards network, which will include 60 casino-resorts.
The acquisition also combines Caesars’ online sportsbook and iGaming products with Golden Nugget’s digital platform.
“Together, 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,” Caesars said in its release.
