Fertitta Entertainment is currently in exclusive negotiations to acquire Caesars Entertainment at $32 per share, with an equity value of $6.5 billion and an enterprise value of $31.5 billion, reflecting Caesars' significant debt load [1]. The talks are taking place within a 45-day exclusive window at Fertitta's headquarters, the Post Oak Hotel in Houston, and are not expected to be finalized until early April, with a closing anticipated in 2027 [1].
Billionaire Carl Icahn, who initially made a friendly bid for Caesars at $28.50 per share in January, has since raised his offer to $33 per share, contingent on due diligence, should Fertitta walk away from the deal [1]. Icahn's stake in Caesars is reported as 1.2% of outstanding shares according to FactSet, though one source claims his total holdings, including derivatives, amount to approximately 18 million shares [1]. Icahn has also placed two directors on Caesars' board and is reportedly interested in combining Caesars' digital gambling business with a large digital gaming company [1].
Market reaction has been notable, with Caesars shares surging 11% on May 31, 2024, to close at $36 following Icahn's increased position in the company [1]. Caesars shares have been under pressure since October 2021, when they reached a post-pandemic high of $119 after the El Dorado merger [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]. Representatives for Icahn also declined to comment [1].
CONCLUSION
Fertitta Entertainment's exclusive talks to acquire Caesars at $32 per share have sparked significant market activity, with shares jumping 11% after Icahn increased his stake. The competing bids and strategic interests from both Fertitta and Icahn suggest ongoing volatility and potential upside for Caesars shareholders. The outcome of these negotiations will be closely watched by investors, given the high-profile nature and substantial value of the deal.