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Negotiations between Caesars Entertainment and Tilman Fertitta have entered a longer exclusivity period, keeping alive the possibility of a takeover valued at nearly $18bn.
People close to the talks say the process slowed after Fertitta’s father, Vic Fertitta, passed away on April 8 at the age of 90. Vic, who once ran Galveston restaurants like the Golden Greek and Pier 23 and invested in Gulf Coast real estate, is often credited by his son as shaping his early business outlook.
Even with that pause, Fertitta remains in active discussions to buy Caesars at about $32 a share. His Golden Nugget casino portfolio, together with Landry’s restaurants and hotels, would combine with Caesars’ large gaming footprint if the deal closes.
The merger would create one of the biggest players in the US leisure and casino market.
Caesars current management could continue even after deal
Sources at Bloomberg familiar with the talks say financing for the proposed takeover would be built on a mix of equity and borrowed funds. Fertitta is expected to raise between $2bn and $3bn in equity, while another $4bn to $5bn would come from loans secured against assets.
On top of that, he would assume Caesars’ existing debt of more than $11bn, underscoring the scale of the transaction and the challenge of combining two large gaming businesses.
Caesars currently operates 52 casino properties across the United States, compared with Golden Nugget’s eight. Regulators may require asset sales in certain markets to prevent dominance, meaning divestitures could become part of the process.
Even with those hurdles, discussions have included the possibility of keeping Caesars’ current leadership in place. Members of the Carano family, who hold board and executive roles, could remain involved, and CEO Tom Reeg is also seen as likely to play a part, though details are not yet final.
Fertitta’s other holdings, such as his hotel portfolio, office properties, and the Houston Rockets, are not expected to be included in the deal.
