Caesars Entertainment extends talks with Tilman Fertitta over $18B takeover deal

Caesars Entertainment may proceed with an $18bn takeover deal with billionaire Tilman Fertitta, who has long expressed interest in acquiring the entertainment and gaming company.

Previously, Fertitta Entertainment reached out to Caesars Entertainment about a possible deal in 2018, but the deal never came through. In March, Fertitta offered a $7bn buyout for Caesars Entertainment, topping a competitor’s bid. The announcement of an extension indicates that the two parties are still deliberating on the specifics of a potential deal with Fertitta Entertainment, which is controlled by the investor, offering $32 per share for the company. The takeover would also see Fertitta Entertainment also take over $11bn of Caesars’ debt, as reported by Bloomberg and Reuters. Fertitta is already present in the gaming and entertainment business with Landry’s restaurants and the Golden Nugget Hotel and Casinos, and the potential acquisition of Caesars Entertainment would allow him to create an even larger casino giant as a result. According to Bloomberg, the takeover deal will include anything between $2bn and $3bn in equity as well as $4bn to $5bn in fresh debt leveraged against assets. In the meantime, Fertitta Entertainment presently has more than 600 properties across 15 countries, with a potential addition of Caesars Entertainment significantly expanding this footprint by 50 casino properties in North America alone, and such noteworthy brands as Harrah’s, Eldorado, and Caesars Palace. Whether the deal comes through this time around is still subject to speculation and talks behind closed doors.