Tilman Fertitta is reportedly interested in purchasing Caesars Entertainment for $7bn, backing previous speculation that he had his eye on acquiring the casino operator.
The Wall Street Journal (WSJ) has reported that Fertitta, the billionaire owner of the Golden Nugget Casino and Fertitta Entertainment, will be offering around $34 a share to acquire the casino brand, superseding a reported competing offer from Carl Icahn‘s Icahn Enterprises of an all-cash offer of around $33 per share.
Caesars has not officially accepted nor rejected the offer, according to WSJ, with the operator declining to comment about the reported takeover bid. Reuters also requested a comment from Fertitta, but he did not immediately respond. It is also possible that neither offer to acquire the operator would be accepted by Caesars.
Caesars had a reported market capitalisation of $5.78bn following the closing of markets on Wednesday, according to London Stock Exchange-compiled data.
Caesars’ Vegas dip
Caesars has been impacted by softer visiting numbers in Las Vegas, reporting a net loss for the past four quarters.
The operator reported its fourth quarter financials last month, posting $2.9bn in net revenues, a 4.4% increase year-over-year (Q4 2024: $2.8bn). However, net loss for the quarter was $250m, down compared to a net income of $11m in 2024.
Vegas revenue was down 3.4% YoY to $1bn (Q4 2024: $1.1bn), regional revenue was up 4% to $1.4bn (Q4 2024: $1.3bn), Caesars Digital revenue rose by 38.7% to $419m (Q4 2024: $302m) and managed and branded revenue declined by 4.4% to $65m (Q4 2024: $68m). Same-store adjusted EBITDA ended at $901m, up 2.2% (Q4 2024: $885m).
At the time, Tom Reeg, Chief Executive Officer of Caesars Entertainment, commented: “Fourth quarter consolidated same-store adjusted EBITDA grew year-over-year, driven by Caesars Digital, which set a new quarterly record of $85m, stable results in our regional segment and a quarterly sequential improvement in operating trends in Las Vegas.
“As we look ahead to 2026, the brick-and-mortar operating environment remains stable, and we are expecting another year of strong net revenue and adjusted EBITDA growth in our Caesars Digital segment. When combined with lower capex and cash interest expense, 2026 is forecasted to deliver strong free cash flow that we expect to use to pay down debt and opportunistically repurchase our common stock.”
Change incoming?
Caesars may be considering a potential brand sale because of the dip in financials. There are rumours of a possible management-led buyout as well.
Yet, during the operator’s financial earnings call, Reeg stated that a sale of Caesars Digital was unlikely.
He noted: “We will do what maximises value to shareholders over the long term. I would say, given what we have seen in valuations in the space over the past six to nine months, this does not seem like a market that screams you should come and offer some equity of any kind. So it’s unlikely you will see something in the near term.
“Our focus is on hitting our numbers, scaling the business, proving it is scalable, and we are still in the midst of that and making great progress. But in the current market environment, it is unlikely you will see us pursue a separation transaction.”
With speculation growing, it wouldn’t be far-fetched to question if a sale could be limited to Caesars’ land-based assets or if the operator’s digital offerings could be included too.
Alongside Golden Nugget, Fertitta also has a 12.3% stake in Wynn Resorts. At the time, the stake in Wynn was a clear signal that he was looking to expand his footprint on the Las Vegas strip. The latest rumours of a Caesars takeover could see his Vegas plans come to fruition – pending the acceptance of his bid.