Eldorado Resorts Inc., a casino entertainment company based in Reno, Nevada that operates 26 properties across 12 U.S. states and Caesars Entertainment Corp, an American gaming corporation based in Paradise, Nevada that manages over 50 casinos and hotels, are already in initial stages of a possible merger.
According to the sources and industry experts, both firms are in talks with each other. Though there isn’t an official statement out yet, the reports coming out indicate that the process for merger has already been set in motion.
Since the beginning of 2019, we have been witnessing a lot happening with Caesars after it managed to completely come out of the risks of a potential bankruptcy last year.
Recently, activist investor Carl Icahn had also increased his stakes in Caesars from 9.8% to 17.75% to become the single largest investor in the company. Icahn has been vocal of his opinion to sell Caesar as he finds it the only way out for the company. He also has three new directors in Caesar’s board while he gets to decide the next CEO for Caesars.
According to the sources, some information related to Caesars’ financial position has already been shared Eldorado for inspection. Eldorado’s analysts are already in the process to analyse the possibilities and terms of the merger.
A bidding offer is yet to be made by Eldorado as the talks are still in the early stages. Earlier Caesars had announced that they will be downsizing the workforce to cut the financial losses.