Caesars Entertainment targets the US
Eldorado will take over Caesars Entertainment and will focus the company on the US market, CEO Tom Reeg advanced.
US.- Caesars has businesses all around the globe, but will now redirect its efforts. As Eldorado is set to buy the company, Caesars Entertainment will focus on the US market, according to company executives.
“We’ve not made firm decisions on international yet,” Eldorado CEO Tom Reeg said during a conference call with investors. “I would tell you that you know us as a company that’s been domestically focused. The opportunity internationally is going to have to be, frankly, stupendous for us to be running in that direction,” he added. However, he assured “no firm decisions have been made at this point.”
As the casino industry is set to arrive in Japan soon, the company’s potential plans are now very uncertain. Caesars Entertainment’s focus on the US market has raised some eyebrows on whether it will push for a Japanese venue. The company had been linked with Foxwoods in a potential bid, but that may fall apart after the merger.
Eldorado’s deal
Eldorado Resorts, Inc and Caesars Entertainment Corporation have announced that that they have entered into a definitive merger agreement. The merger between the companies will create the largest US gaming company.
The companies revealed that they agreed on an equity value of US$12.75 a share — in a mix of cash and Eldorado stock — representing a premium of approximately 28% to Caesars’s June 21 closing price. With debt included, the deal is worth approximately US$17.3 billion.
After the announcement of the deal, Caesars’ shares increased 13% to US$11.25 in pre-market trading, while Eldorado fell 6.8%. Giving effect to the transaction, Eldorado and Caesars shareholders will hold approximately 51% and 49% of the combined company’s outstanding shares, respectively.
