Caesars Entertainment In Negotiations With Eldorado Over Possible MergerReported Deal Would Value Caesars Entertainment At $7.4 Billion |
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Caesars Entertainment Corp. is in ‘advanced’ discussions about a possible merger with Eldorado Resorts Inc., according to a report from Bloomberg.
The financial media company is reporting that a source close to the situation, who asked to remain anonymous because the negotiations are private, said that the deal would give Caesars shareholders $11 per share. That would give Caesars a valuation of more than $7.4 billion.
Currently, Caesars Entertainment’s stock is valued at $9.75 per share, while Eldorado’s stock is worth $51.64. Since March, Caesars’ stock has risen 6.5 percent.
The source also told Bloomberg that while the deal is in its advanced stages, it is still weeks away from being finalized and that it could fall through if financing isn’t secured.
Earlier this year, billionaire Carl Icahn announced that he owned 10 percent of Caesars Entertainment and began the push for a sale. The following month, Caesars added three new board members that were approved by Icahn and in April, they announced that Anthony Rodio replaced Mark Frissora as CEO.
Rodio and Icahn have a previous relationship from when Rodio served as CEO during Icahn’s sale of Tropicana Entertainment to Eldorado Resorts for $1.85 billion.
If the deal with Eldorado falls through, it is likely that Caesars will begin negotiations with Golden Nugget owner Tilman Fertitta. Fertittta was interested in a merger last year and it is being reported that as recently as this past spring, he was still interested.
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