Las Vegas staple Caesars Entertainment sold for nearly $6 billion

Caesars Entertainment, a staple on the Las Vegas strip, is set to be acquired by Fertitta Entertainment in a deal valued at nearly $6 billion (USD).

Fertitta Entertainment, which owns the Golden Nugget casino brand along with restaurant chains like Rainforest Cafe and Morton's The Steakhouse, will pay $5.7 billion in cash and assume nearly $12 billion of Caesars’ debt, bringing the total transaction value to roughly $17.6 billion, according to a press release.

Caesars became a household name after the debut of Caesars Palace on the Las Vegas Strip in 1966, though the company’s history stretches back to Reno, Nevada, in the 1930s.

The company’s resorts operate primarily under the Caesars, Harrah’s, Horseshoe, and Eldorado brands

Under the terms of the agreement, Caesars is allowed to explore competing bids until July 11.

Shareholders will receive $31 per share in cash, representing a 49 per cent premium compared with the stock price before reports of merger talks surfaced in February.

Shares of Caesars Entertainment, which have already climbed 15 per cent since speculation about the deal began, gained nearly two per cent in premarket trading Thursday.

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