Reports: Potential Merger on Tap for Caesars

Golden Nugget Las Vegas
The famous "shark tank" pool at the Golden Nugget Las Vegas.

A potentially big development on the horizon for Las Vegas hotels: the billionaire owner of Golden Nugget Casinos has approached Caesars Entertainment Corp about a merger, although a deal is by no means certain.

As first reported by Reuters, Tilman Fertitta has approached Caesars regarding a potential merger, although sources familiar with the deal said it is not certain. Caesars, which emerged from bankruptcy last year, is currently exploring a bid for another casino company, Jack Entertainment LLC.

According to the New York Post, Fertitta proposed a deal that would value Caesars, which is publicly traded, at $13 per share. While the “reverse merger” would technically mean that Caesars was acquiring Golden Nugget, the deal would still leave Fertitta as the combined company’s largest shareholder, making him chairman and chief executive. At the same time, Caesars, which has a market cap of $6.8 billion, could refuse to entertain an offer from Fertitta, whose net worth has been estimated at $4.5 billion.

DAILY NEWS & DEALS NEWSLETTER

Like this story? Subscribe to Daily News & Deals!

Featuring breaking news on the latest product launches, deals, sales promotions, and executive appointments. Be sure to sign-up for this free industry daily newsletter.

Chad Beynon, senior analyst at Macquarie, told CNBC that valuations in the gaming industry are “near five-year lows,” which could be driving more companies in the space to explore mergers. While Golden Nugget is a much smaller brand than Caesars, Beynon said Golden Nugget could still provide value to the company, because it is part of the Landry’s restaurant and entertainment conglomerate, which also operates the Morton’s steakhouse, Bubba Gump Shrimp and Rainforest Café brands.

A potential deal would also add the Golden Nugget Las Vegas to Caesars’ already-formidable hotel portfolio in the destination. In addition to Caesar’s Palace, the company also operates a Nobu Hotel, Planet Hollywood, The LINQ and more.

Related Stories

Five Big Luxury Hotel Updates From Paris

MSG Sphere Las Vegas Breaks Ground at The Venetian

W Hotels Worldwide Heads Into Brazil With New Hotel

Now Open: NoMad Las Vegas

Suggested Articles:

While fish and chips, afternoon tea, and the pub culture are quintessentially British favorites, there is so much more to discover in Great Britain’s

If you're looking to score a good travel deal on Black Friday or Cyber Monday, here are some tips.

Destination Trinidad is looking to increase the available authentic experience for cruisers, while also developing skill across the tourism sector.