One of the Strip’s largest casino operators might be attracting attention from potential buyers, a new report suggests.
Caesars Entertainment Inc. is weighing takeover offers, including a possible management-led buyout, according to a Thursday story from the Financial Times. Caesars Entertainment is “exploring a sale after receiving takeover interest from several possible bidders,” among them Texas billionaire Tilman Fertitta, the FT reported.
On Friday, a Caesars Entertainment spokesperson said the company would not comment on market speculation or rumors. Fertitta’s public relations team did not immediately respond to a request for comment.
The FT report noted that talks were ongoing, and nothing had been finalized.
Caesars Entertainment’s stock price surged more than 19 percent after the close of trading Thursday following the FT story. At closing Friday, the stock price was $25.05 per share, up $3.80 per share since the start of the week.
The company’s share price is down nearly 73 percent over the last five years. Its current market capitalization of $5.1 billion and reported debt load of $11.9 billion results in an enterprise value of $17 billion.
That total does not account for long-term lease payments on multiple casino properties across the country, including Caesars Palace and Harrah’s in Las Vegas. Caesars Entertainment owns the other six Strip casino properties in its portfolio.
Any potential acquisition of Caesars Entertainment would likely require significant financing from Wall Street banks, according to the FT’s unnamed sources.
Caesars Entertainment was acquired by Reno-based Eldorado Resorts Inc. in 2020 but retained the Caesars brand. Its current board includes representatives tied to activist investor Carl Icahn, who pushed for strategic changes at the company before the Eldorado deal.
Fertitta, the named potential bidder, is currently the U.S. ambassador to Italy and San Marino. Fertitta’s hospitality empire includes several Golden Nugget casino hotels in Nevada and the largest single shareholder stake in Wynn Resorts Ltd. He is a cousin of Lorenzo and Frank Fertitta III, who run Red Rock Resorts and Station Casinos.
Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.