Caesars Entertainment Stock Closes Up 19% On Takeover Buzz
Synopsis
The Financial Times reported on Thursday that the company is weighing a bid from Texas gaming and hospitality billionaire Tilman Fertitta.
- The company is also reportedly considering a possible management-led buyout.
- The report, however, noted that the talks are still ongoing with no transaction decided.
- Eldorado Resorts completed its acquisition of Caesars Entertainment Corporation in 2020 for approximately $17.3 billion, creating the largest US casino operator.
Shares of Caesars Entertainment Inc (CZR) closed 19% higher on Thursday on the heels of reports that the company is contemplating a sale upon receiving multiple takeover offers.
The Financial Times reported on Thursday that the company is weighing a bid from Texas gaming and hospitality billionaire Tilman Fertitta. Fertitta Entertainment is the group behind the Golden Nugget casino chain.
The company is also reportedly considering a possible management-led buyout.
The report, however, noted that the talks are still ongoing with no transaction decided. The talks could also collapse without a deal, it noted. However, if a deal materializes, it would mark one of the biggest gaming takeovers in years, FT said.
Sources also told FT that any acquisition would likely involve a large financing package from Wall Street banks owing to Caesars’ debt load of more than $20 billion. This makes the chance of a deal "much trickier,” the report said.
About Caesars
Eldorado Resorts completed its acquisition of Caesars Entertainment Corporation in 2020 for approximately $17.3 billion, creating the largest US casino operator. The merged entity rebranded as Caesars Entertainment.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around CZR rose from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while message volume increased from ‘low’ to ‘normal’ levels.
A Stocktwits user said that they expect a deal to value the company at no less than $35/ share.
Another raised doubts about a deal materializing.
CZR stock has dropped 28% over the past 12 months.
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