Splashing out $5.7 billion in cash! Fertitta will acquire Caesars Entertainment Inc (CZR.US) to create a new entertainment empire in the United States.

Caesars Entertainment Inc (CZR.US) has agreed to be acquired by the Feverta Entertainment Corporation, owned by American tycoon Tilman Fertitta. This $5.7 billion all-cash deal will create a massive entertainment empire in the United States. In a statement, Caesars Entertainment Inc stated that shareholders will receive a cash consideration of $31 per share. This offer represents a 49% premium on Caesars Entertainment Inc's stock price on February 25 (the last trading day before the first rumors of the acquisition). The agreement includes a bidding window until July 11, during which Caesars Entertainment Inc can entertain other acquisition offers. Tilman Fertitta has been pushing for a merger of his gambling and restaurant businesses with Caesars Entertainment Inc for years. Caesars Entertainment Inc owns or manages approximately 52 casinos in the United States. The acquisition will need to undergo regulatory scrutiny, and Fertitta may have to divest some assets to obtain approval. Fertitta is one of the major donors to the Trump 2024 presidential campaign and the current US Ambassador to Italy. His business empire also includes the NBA's Houston Rockets, multiple restaurants in New York, and a significant stake in the sports betting company DraftKings (DKNG.US). According to a statement released on Thursday, the Carano family, who own about 5% of the outstanding shares of Caesars Entertainment Inc, has agreed to transfer some of their shares to Fertitta. Media reports in April stated that some members of the Carano family hold positions on the board and management of Caesars Entertainment Inc, with CEO Tom Reeg likely to continue in his role after the acquisition. The acquisition includes approximately $11.9 billion in outstanding debt. Fertitta plans to fund this transaction through equity and syndicated financing. After the transaction is completed, Caesars Entertainment Inc's stock will no longer be listed. At the time of writing, Caesars Entertainment Inc's pre-market price has risen by 1.91% to $29.33, slightly below the acquisition offer.