Caesars Entertainment Inc. has agreed to be acquired by Fertitta Entertainment in an all-cash transaction valued at approximately $17.6 billion. Fertitta Entertainment, which owns the Golden Nugget in Las Vegas as well as chains like Rainforest Cafe and Morton’s, will pay $5.7 billion and assume about $11.9 billion of Caesars' outstanding debt. The deal will take one of the Las Vegas Strip's most prized casino operators private, creating a massive entertainment empire in the United States.
Caesars shareholders will receive $31 in cash for each share they own, representing a 49% premium over the share price before rumors of a possible tie-up emerged in February. Shares of Caesars Entertainment Inc. rose almost 2% before the opening bell Thursday and have climbed 15% since merger rumors first appeared.
The company became an iconic name after the opening of Caesar’s Palace on the Las Vegas Strip in 1966, though its roots date back to the 1930s in Reno, Nevada. As part of the current agreement, Caesars may seek competing bids through July 11.