LAS VEGAS, Nevada: Caesars Entertainment, one of the most recognizable names on the Las Vegas Strip, is being acquired by Fertitta Entertainment in a deal valued at about US$17.6 billion, including debt.
Fertitta Entertainment, which owns the Golden Nugget casino brand as well as restaurant chains including Rainforest Cafe and Morton's, will pay $5.7 billion in cash and assume nearly $12 billion in Caesars debt.
The deal marks a major shift in the U.S. casino and hospitality industry, bringing together two well-known gaming and entertainment operators.
Caesars became a Las Vegas icon after the opening of Caesars Palace on the Strip in 1966, though the company's history dates back to the 1930s in Reno, Nevada.
Under the agreement, Caesars investors will receive $31 in cash for each share they own, representing a 49 percent premium over the company's stock price before reports of a possible merger surfaced in February.
Caesars shares, which have already gained about 15 percent since takeover speculation began, rose nearly 2 percent in premarket trading on Thursday.
The agreement also includes a "go-shop" provision allowing Caesars to seek alternative bids through July 11.
