Eldorado Resorts to Merge With Caesars Entertainment

There have been rumblings about a sale of Caesars Entertainment for months, now several major news outlets are reporting a deal has been struck.

According to sources familiar with the deal, Eldorado Resorts Inc. has agreed to merge with Caesars Entertainment. The selling price is expected to be $8.6 billion. Here’s more.

The cash and stock deal is said to be valued at $17.3 billion (which represents the sale price and a metric ass-ton of Caesars Entertainment debt).

Eldorado Caesars merger

Eldorado operates 26 casinos in 12 states. That number’s about to jump up a smidge.

It’s fairly certain the merger was the result of pressure from bajillionaire Carl Icahn, currently the biggest shareholder of Caesars Entertainment.

Assuming reports of the merger are true, that would put the value of Caesars stock at $13 a share.

For a little historical perspective, in 2004, Harrah’s bought Caesars for $17 a share.

In 2007, Apollo Global Management LLC and TPG bought Harrah’s for $90 per share. Fun fact: When the buyout happened, the company’s CEO Gary Loveman made $94 million in one day.  No, really.

Caesars Entertainment filed for bankruptcy in 2015 with a staggering debt load of $24 billion. Read more.

Yep, it’s been a wild ride, to say the least.

There’s a lot of head-scratching going on regarding the Eldorado and Caesars Entertainment merger. Also, there are still a lot of moving pieces involved, such as rumors we’ve heard certain Caesars-owned resorts—Rio and Planet Hollywood, specifically—are being sold off.

Rio Las Vegas sign

It’s time to say “goodbye” to Rio.

We’ve also seen some signs Caesars Entertainment may shed its Horseshoe brand.

Ah, the glorious drama!

An official announcement of the Eldorado and Caesars merger is expected on June 24, 2019, and we’ll know more about the specifics of the deal, and hopefully what it all means for your Las Vegas experience.

Update (6/24/19): The merger of Eldorado and Caesars Entertainment has been confirmed. The combined company will have 60 casinos in 16 states, and will be called Caesars. The company will be headquartered in Reno, Nevada. The deal is set to close in the first half of 2020. He’s the official statement from Eldorado Resorts. Here’s a sassy statement from Carl Icahn.

Since the announcement, there have been a lot of questions about the fate of the Caesars Rewards loyalty club. We’ve got this. Thanks to Eric R. on the Twitters for passing this along.

Caesars Rewards Eldorado

Translation: Chill.

9 thoughts on “Eldorado Resorts to Merge With Caesars Entertainment

  1. Oliver Sites

    Within the next few years, economists probably will start teaching graduate-level classes about a generation of casino industry mergers, bankruptcies, splits, and consolidations. And not just about Vegas. Atlantic City and some of the regional brands are equally fascinating.

    One (now small) example is the MGM-Wynn, Mandalay-Circus, MGM-Mandalay, Wynn-Wynn chain of events.

    Reply
  2. Jen Antonelli

    Does anyone know if this will this affect new reservations? We have reservations in Mar at Harrahs, should we be worried? Will they get rid of the resort fees, fingers crossed they do. We love Vegas just a little scared of what is going to happen.

    Reply
    1. Jeremy

      I received an email with a statement from Caesar’s announcing the buyout. In the email it said all reservations will be honored and to make new reservations without any worry. If any changes are to be made I wouldn’t be concerned with your March reservations. I also have one in March myself as well as another this coming November.

      Reply
    2. alex

      Mergers take FOREVER to be finalized. As Jeremy notes, you shouldn’t be worried. I’d even bet that come next March, they still will be two separate companies.

      Even if the merger is complete, there’d be no reason for the new entity to do anything to jeopardize existing reservations. They will want the cash to continue flowing. (Sadly, that means resort fees will probably remain in place.)

      Reply
      1. Jennifer Antonelli

        I know it will take time for it to be complete. It is very sad about the resort fees. Thank you for the reply

        Reply
  3. William Wingo

    So the company is bought out in 2007 and the CEO makes $94 million in one day–and then eight years later they go bankrupt with a debt of $24 billion. That’s $3 billion per year. It’s enough to make a libertarian start listening to Bernie Sanders.

    Except for WSOP at the Rio I haven’t set foot in a Ceasars property in many years, so I don’t have any strong feelings about the merger. But it will have to be an improvement. Caesars can’t sink any lower, so they have nowhere to go but up. Then again, I’ve been wrong before….

    Reply
  4. Midwest Mike

    Before Harrah’s came along Caesars Palace had many happy, loyal customers. The whining and disenchantment began almost immediately when Harrah’s took over Caesars. Caesars was once an iconic place with prestige, Loveman brought about changes that were negative in most respects.

    Reply

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