E-2: Return of the Confusing Boner

This week in Vegas history: June 4, 2020, Nevada casinos reopened after the COVID-19 shutdown.

After more than two months closed, casinos across Las Vegas began reopening, including properties on the Strip, downtown, and around the valley. The D and Golden Gate reopened at 12:01 a.m., while other properties followed later that day.

NEWS:

Fertitta Entertainment is buying Caesars Entertainment in a deal valued at $17.6 billion, including about $11.9 billion in assumed debt. The deal would take Caesars private.

Shareholders would receive $31 per share, which Reuters describes as nearly a 50% premium to Caesars’ stock price before the deal was first reported in February.

Tilman Fertitta’s company already owns Golden Nugget casinos, the Houston Rockets, and a large restaurant/hospitality portfolio, including brands like Rainforest Café and Bubba Gump Shrimp.

Caesars has been under pressure from softer Las Vegas visitation and growing competition in online betting, where rivals like FanDuel and DraftKings are stronger.

Caesars’ current leadership is expected to stay, including CEO Tom Reeg and CFO Bret Yunker.

The deal includes a “go-shop” period through July 11, meaning Caesars can still consider competing offers.

If completed, the acquisition would give Fertitta a much larger casino footprint: Caesars controls more than 50 casinos across North America, including Caesars Palace, Harrah’s, and Eldorado, plus retail and online sports betting.

The article notes the deal could face regulatory scrutiny because of the size and scope of the combined gaming/hospitality business.

Vital Vegas reports that a private grand opening party for the newly rebranded Vanderpump Hotel will be held on June 11.