Eldorado Casino and Caesars in Merger Talks
The casino giants, Caesars and Eldorado, are reportedly discussing a merger. It might result in the creation of a US$9 billion hospitality and powerhouse. Eldorado Resorts Inc. and Caesars Entertainment Corp. have been having meetings regarding working together for a while now. The news about the merger is being brought as Caesar’s biggest stakeholder, Carl Icahn is putting pressure on the Las Vegas casino and hotel to sell or merge itself.
Details on the Merger
According to sources who asked to remain anonymous because of the privacy of the matter, Caesars is offering limited financial information to Eldorado Casino. However, Eldorado itself has not put a binding offer on the table yet. Sources have also reported that there isn’t a certainty that the two companies will merge.
Eldorado Resorts Inc. operates and won twenty-six properties in the USA. The company recently acquired Tropicana Entertainment from Icahn Enterprises in a deal that was worth about US$1.85 billion. Tropicana operates local casinos in New Jersey, Nevada, Mississippi, Indiana, Missouri and Louisiana.
Caesars, on the other hand, owns and operates over fifty properties in the USA and five other countries outside the States. Caesar’s primary operating unit started from a complex and lengthy bankruptcy towards the end of 2017 after they failed to raise a debt of US$25 billion. However, as of December 2018, the casino operating company’s debt was standing at USD$9 billion.
It’s believed that this is not the first time for the two leading casinos meet and explore a merger. Previous reports state that the casino giants did go into discussions last fall again. But, the alliance didn’t surface as there was no offer made. Stay tuned to Casino US, as we will do the best we can to keep you posted on this matter.