Eldorado Resorts Purchases Caesars in $17 Billion Deal, Creates Casino Megapower with Presence in 16 States
LAS VEGAS – Eldorado Resorts has announced that they will be purchasing Caesars – and in the process acquiring over 35 of their casinos – in a deal comprised of both cash and stock valued at over $17 billion, according to reports. The deal will result in Eldorado essentially becoming a casino mega-power, with a total of approximately 60 casinos and resorts to its name as a result of the purchase.
The acquisition, which took place on Monday of this week, now gives Eldorado a presence in 16 states and makes it one of the largest entertainment and gambling entrepreneurs in the country, according to a statement released by Eldorado Chief Executive Tom Reeg.
“Together, we will have an extremely powerful suite of iconic gaming and entertainment brands,” he said, “as well as valuable strategic alliances with industry leaders in sports betting and online gaming.”
The overreaching company in charge of this empire will be dubbed Caesars – taking advantage of the internationally-recognized brand name – and will be headquartered in Reno, Nevada, in addition to having a “significant corporate presence” in Caesars’ hometown of Las Vegas.
The deal will see Eldorado paying $8.40 per share of Caesars’ stock, as well as an exchange of $12.75 in Eldorado stock for each share of Caesars stock; in addition, Eldorado will assume approximately $8.8 billion of Caesars’ debt. According to the details of the transaction, Caesars is currently valued at about $8.6 billion; in 2017, the casino giant had emerged from federal bankruptcy protection, but has continued having financial difficulties since then.
Eldorado most likely made the move to acquire Caesars in light of the increased popularity of casinos in general, with sports betting growing in market share after successful legalization efforts in recent years. If approved by gaming regulators and shareholders from both companies, the deal is expected to be closed in early 2020, reports say.
Caesars Entertainment, Inc. was a Las Vegas Valley, Nevada based business that was the largest owner, operator and developer of casinos throughout the world. It was part of the Hilton Hotels chain and was spun off from Hilton as Park Place Entertainment in 1998, and renamed as Caesars Entertainment in 2003. The company was acquired in 2005 by Harrah’s Entertainment, which later took on the Caesars Entertainment name.
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