3 hours ago - Economy
Golden Nugget owner to buy Caesars for $17.6 billion
Add Axios as your preferred source to
see more of our stories on Google.
Fertitta Entertainment, owner of the Golden Nugget casino chain, on Thursday agreed to buy Caesars Entertainment for $5.7 billion in cash, or $31 per share.
- The deal also includes $11.9 billion in assumed debt, bringing the headline price to $17.6 billion.
By the numbers: The share price represents a 49% premium over where Caesars was trading on Feb. 25, when deal talk first leaked, and a 7.7% premium to Wednesday's close.
Flashback: The valuation is a far cry from the $30 billion Caesars received when taken private in 2008 by Apollo and TPG.
- That debt-laden deal for what then was called Harrah's closed just two months before Bear Stearns went bankrupt, making it an instant albatross.
- Caesars would try and fail to go public in 2010, get out two years later at reduced levels, file for bankruptcy in 2015, and then restructure by selling off some underlying properties to its debtors.
Look ahead: Caesars has a go-shop until July 11, during which it can solicit superior bids.
