Eldorado Resorts will buy Caesars in a cash-and-stock deal valued at $17.3 billion, to create a casino giant.
The acquisition puts about 60 casinos and resorts in 16 states under a single name, creating one of the biggest gambling and entertainment ventures in the USA.
Eldorado CEO Tom Reeg and Chairman Gary Carano will lead the company, called Caesars. They will be based in Reno, Nevada, where Eldorado is currently based. They will also have a significant presence down the road in Las Vegas.
Eldorado will pay $8.40 per share in cash and 0.0899 shares of Eldorado stock for each Caesars share, or $12.75 per share. The company will also assume Caesars’ significant debt.
Shareholders of Eldorado Resorts will hold about 51% of the company’s outstanding stock, with Caesars Entertainment shareholders holding the remaining and 49%.
Earlier this year, billionaire Carl Icahn took an enormous stake in Caesars and pushed for fundamental changes at the company. The company operates more than 35 casinos in the USA, but only emerged from bankruptcy protection in late 2017, and has still been struggling since.