All speculations related to a potential Caesars Eldorado Resorts merger came to a halt after a $17.3 billion deal was announced today.
Eldorado resorts confirmed purchase of Caesars Entertainment in a cash-and-stock deal. The new entity would be worth $10 billion.
Earlier last week we had reported that activist investor Carl Icahn and Caesars Board members were at odds about a deal price. The Board opined that the price which was being offered reportedly by Eldorado was way too little. However, the deal concluded today with Eldorado Resorts offering $12.75 for each Caesars share outstanding.
Caesars managed to get a 28 percent premium on its current market price for each share. According to the experts, it is a fair deal for Caesars.
Carl Icahn, who is also one of the biggest stakeholders in Caesars, said: “It is rare that you see a merger where because of the great synergies ‘one plus one equals five.”
“Together, we will have an extremely powerful suite of iconic gaming and entertainment brands, as well as valuable strategic alliances with industry leaders in sports betting and online gaming,” said Tom Reeg, chief executive officer of Eldorado.
Last week when Eldorado decided to sell three of its casinos, experts and those familiar with the matter said that the merger deal with Caesars is almost confirmed and that the move to see casino was a strong indicator of what was announced today.