Fertitta Entertainment is currently in exclusive negotiations to acquire Caesars Entertainment for $6.5 billion, with deal terms set at $32 per share and an enterprise value of $31.5 billion due to Caesars' significant debt [1]. The talks are taking place at Fertitta's headquarters, the Post Oak Hotel in Houston, within a 45-day exclusive window, and the deal is not expected to be finalized until early April or closed until 2027 [1].
Billionaire Carl Icahn, who initially bid for Caesars, has a current offer of $33 per share, subject to due diligence, should Fertitta walk away [1]. Icahn first made a friendly bid in January at $28.50 per share, assuring current management would remain in place [1]. Icahn reportedly owns 1.2% of Caesars' outstanding shares according to FactSet, though one source claims his holdings total about 18 million shares including derivatives [1]. Icahn has also placed two directors on Caesars' board and increased his position in 2024, which sent Caesars shares surging 11% on May 31, 2024, to close at $36 [1].
Sources suggest Icahn is interested in joining forces with a large digital gaming company, potentially combining Caesars' digital gambling business with theirs [1]. Fertitta secured the exclusivity window for negotiations, effectively sidelining Icahn's offers [1]. Caesars shares have been under pressure since October 2021, when they reached a post-pandemic high of $119 [1].
Caesars issued a statement saying, "As a matter of policy, we do not comment on market rumors or speculation," while Fertitta did not respond to CNBC's request for comment [1]. Fertitta stepped down as CEO of his company, which includes Landry's, the Houston Rockets, and the Golden Nugget casino, to satisfy ethics requirements for his appointment as U.S. Ambassador to Italy in 2025 [1].
CONCLUSION
Fertitta Entertainment's exclusive talks to acquire Caesars for $6.5 billion have sidelined Carl Icahn's competing bids, though Icahn remains a significant shareholder and board influencer. The ongoing negotiations and high-profile rivalry have driven notable volatility in Caesars' share price, with the outcome expected to have a substantial impact on the casino and digital gaming sectors. Market participants are closely watching for further developments as the deal progresses toward potential finalization in early April.