las vegas — Billionaire hospitality tycoon Tilman Fertitta has acquired Caesars Entertainment for nearly $6 billion, a merger that would create one of the largest gaming empires.
Caesars became an iconic name after Caesars Palace opened on the Las Vegas Strip in 1966. But its roots go back to the 1930s in Reno, Nevada. It operates nine hotels on the Strip and owns properties in more than a dozen states.
Fertitta is CEO of Fertitta Entertainment, the company that owns the Golden Nugget in Las Vegas and chains like Rainforest Cafe and Morton’s. Fertitta also owns the Houston Rockets and is the largest shareholder in Wynn Resorts as well as DraftKings, the sports betting company. Fertitta is also a major donor to the Republican Party and the US ambassador to Italy.
Fertitta Entertainment will pay $5.7 billion and will take on approximately $12 billion in debt from Caesars, bringing the total value of the deal to about $17.6 billion.
As part of the agreement, Caesars can seek competing bids until July 11.
The deal must be approved by shareholders. But if the deal goes through, it will create one of the largest gaming empires with 60 casino resorts, online gaming, retail sports betting at more than 200 locations through the William Hill brand, and more than 600 Fertitta Entertainment outlets, such as restaurants and entertainment venues.
Caesars investors will receive $31 in cash for each share they own, a 49% premium to the stock price before talk of a potential partnership between the two entertainment companies begins in February.
Shares of Caesars Entertainment Inc., which have risen 15% since merger rumors surfaced, rose nearly 2% before the opening bell on Thursday.
David Schwartz, a gaming historian at the University of Nevada, Las Vegas, said Fertitta’s investment in the Las Vegas Strip is a sign of a lot of optimism about Las Vegas, which has suffered from… Decrease in the number of visitors After the Covid-19 pandemic and what Some officials said It was the Trump administration’s immigration and tariff policies.
“Fertitta has been in Las Vegas for over 20 years at this point, so I’m not saying he’s not a gaming operator, but he has a significant portfolio outside of gaming. I think that’s important, and it could be something really exciting,” Schwartz said.
Culinary Workers Union Local 226 and Bartenders Union Local 165, which represent more than 60,000 hospitality workers in Nevada, said they have strong relationships with both Cesar and Fertitta, and don’t see that changing.
“We expect there will be discussions in the future about the full ramifications of this purchase, and although we do not know all the details yet, we are confident that based on our relationships with both companies, we will continue to have a positive relationship in the future,” the union said in a statement on Thursday.