Caesars Entertainment’s shares soared 19% on Thursday, 26 February, after a report suggested the Las Vegas giant was weighing up takeover offers, including a bid from Tilman Fertitta.
The FT reported Fertitta, the current US ambassador to Italy, was one of several potential bidders for Caesars via Fertitta Entertainment.
A possible management-led buyout was also reported by the newspaper.
Fertitta Entertainment owns the Golden Nugget land-based casino portfolio, as well as a host of restaurants including Rainforest Café and Bubba Gump Shrimp.
The group sold the online arm of Golden Nugget to DraftKings in 2022 in a $1.56bn deal.
Caesars’ stock leapt to $24.74 (£18.36) per share following the report, with its market cap now sitting above $5bn.
The gain represents the largest one-day spike for the stock since May 2020. It comes just weeks after the stock closed as low as $18.14 per share, the lowest level Caesars had traded at in five years.
Earlier this month, Caesars reported Q4 net revenue of $2.9bn alongside adjusted EBITDA of $3.6bn.
The operator runs more than 50 casinos across North America, including Caesars Palace on the Las Vegas Strip, as well as Harrah’s and El Dorado brands.
Caesars Digital, which was subject to speculation of being spun-off as a standalone listed entity, comprises Caesars Sportsbook, Caesars Palace Online Casino and Horseshoe Online Casino.
Q4 net revenue for the division jumped 39% to $419m alongside adjusted EBITDA of $85m – a new quarterly high.
Speaking on the earnings call following the report’s release, CEO Tom Reeg played down the spin-off, saying it was “unlikely” to occur “in the near term”.
Last March, activist investor Carl Ichan secured two board seats at Caesars for representatives from Ichan Enterprises.
Ichan lobbied for the sale of Caesars to El Dorado in 2020.
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The post Caesars Entertainment stock soars amid Fertitta takeover interest first appeared on EGR Intel.
Report from the FT suggests Golden Nugget owner Tilman Fertitta is among those interested in acquiring the land-based and online giant
The post Caesars Entertainment stock soars amid Fertitta takeover interest first appeared on EGR Intel.