Casino mogul approaches Caesars about merger
Golden Nugget Casinos’ owner has reportedly shown interest in merging its own company with Caesars Entertainment Corp.
US.- A major deal in the US casino industry could be in the making according to recent reports that say casino mogul Tilman Fertitta has approached Caesars Entertainment Corp to discuss a potential merger. The businessman owns the Golden Nugget Casinos and is considering having his assets bought by the casino giant.
According to Reuters, Fertitta contacted Caesars to discuss the potential deal, which would have the latter as the acquirer and its shareholders remaining as such in the combined company.
Caesars got out of bankruptcy last year and it’s not clear whether it would be interested in acquiring the Fertitta’s assets, with Forbes estimated to be worth US$4.5 billion, while the company’s market capitalisation is US$6.3 billion. Instead, Caesars is looking to acquire Jack Entertainment LLC, a casino company that could be worth up to US$3 billion.
Caesars Entertainment Corporation reported that second-quarter results included net revenues growing by US$1.11 billion to US$2.12 billion, due to the inclusion of the results of CEOC, LLC (CEOC), which emerged from bankruptcy in the fourth quarter of 2017. Furthermore, net income improved US$1.4 billion, from a net loss of US$1.4 billion to net income of US$29 million, due to restructuring charges in the prior year.
