Further details emerged of Golden Nugget owner Tilman Fertitta’s attempt to acquire Caesars Entertainment this week. The latest report said the Houston Rockets owner put a $7 billion price tag on the company.
The Wall Street Journal reported that Fertitta’s company, Fertitta Entertainment, is considering paying about $34 per share for the casino gaming giant. That’s a significant premium considering shares of Caesars stood at about $28 as of Friday morning.
Icahn Also Making A Play For Caesars
The Journal reported that talks are still underway and that an announcement of a deal isn’t imminent. There is also a competing bid from hedge fund manager and activist shareholder Carl Icahn. His Icahn Enterprises has offered $33 per share.
Icahn owns about 1.15% of the company. Icahn Enterprises had owned between 10% and 17% shares in 2019 before Caesars merged with Eldorado Resorts.
The investor had increased his holdings in the company before pushing for the merger, eventually placing two directors on the board. Icahn sold most of its ownership in 2020.
Caesars Once Owned The WSOP
Initial talks concerning the sale of Caesars included the belief that a potential deal would need the approval of Vici Properties, the real estate firm that was spun off after the Caesars’ bankruptcy in 2017. Caesars now operates casinos on properties owned by Vici. However, that may not be a hurdle.
“But the proposals from Fertitta and Icahn Enterprises both involve structuring the deal in a way that would allow the company to be split up without Vici’s consent,” the Journal reported. “Caesars Chief Executive Tom Reeg would likely be involved with either bid.”
Texas billionaire Fertitta owns the Golden Nugget casinos across the country, more than 60 restaurant brands, and the NBA’s Houston Rockets franchise. Fertitta is also a major shareholder in Wynn Resorts.
Caesars operates numerous casinos in Las Vegas and around the country. The company also hosts the annual World Series of Poker each summer at the Paris and Horseshoe casinos, but it sold the actual series and brand to GGPoker parent company NSUS Group in 2024 for $500 million. Caesars still operates the WSOP Online poker platform in the US as part of a licensing deal with NSUS.
