Caesars Entertainment has extended its exclusive negotiation period with Tilman Fertitta’s company, keeping takeover talks alive around a bid valued at about $18 billion including debt. The reported offer is around $32 a share, and the deal would also involve Caesars’ debt load of more than $11 billion.
No deal has been announced, and there is still no certainty that the talks will end in an agreement. The extension does, however, show that discussions are still active and that Caesars has not closed the door on a sale.
Bid would combine Caesars with Fertitta’s wider gaming business
Fertitta’s plan would combine Caesars with parts of his existing gaming and hospitality business, including Golden Nugget casinos and Landry’s restaurant group. That would create a larger company with a broad reach across casinos, hotels, restaurants and digital gaming.
The structure of the bid has shifted as talks have developed. Earlier coverage in March put the enterprise value at about $31.5 billion including debt, while the latest figure attached to the revised proposal is about $18 billion including debt.
Caesars has drawn interest from more than one direction
Earlier this year, the company was reported to be considering interest from multiple parties, including Fertitta Entertainment. It also weighing other strategic options.
That interest has come at a difficult time for Caesars. The company has been under pressure from weaker Las Vegas visitation, online betting competition and a run of recent losses, making it more exposed to deal interest than it was a few years ago.
Fertitta already has a strong link to Caesars
Fertitta is not approaching Caesars as a complete outsider. Caesars’ proxy filing shows he beneficially owns a large stake in the company through Fertitta Entertainment and related entities.
That existing position gives him a direct connection to the business while takeover talks continue. It also helps explain why his interest in Caesars has remained a serious factor in the market’s view of the company this year.
