Billionaire Tilman Fertitta's $5.7 billion bet on Caesars could shake up the casino scene in Las Vegas — and beyond

Billionaire Tilman Fertitta has made a big bet on the casino scene. His company, Fertitta Entertainment, has entered into an agreement to buy Caesars Entertainment (NASDAQ: CZR) for approximately $5.7 billion (1) — $31 a share — including absorbing Caesars’ outstanding $11.9 billion in debt, according to the Wall Street Journal (1). Shares of Caesars are up 4% over the past five days.

Fertitta fended off a competitive offer from fellow billionaire Carl Icahn’s firm. Fertitta had his sights set on Caesars for some time, with the Houston Chronicle (2) reporting he made his first bid back in 2019. The New York Post (3) said it was rejected because the board believed it would saddle Caesars with too much debt.

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The acquisition will be financed through a combination of equity from Fertitta Entertainment, assumed Caesars debt, and newly committed debt financing through a group of 10 banks, according to the official statement (4). Caesars’ board of directors greenlit the sale and recommended that shareholders approve the merger. The agreement includes a ”go-shop” period through July 11 (4), which means Caesars can seek alternative acquisition proposals.

Moneywise reached out to Caesars Entertainment for comment but did not receive a response.

Fertitta famously said in an interview with The Real Deal (5) that the price of real estate can always go up. “The restaurant might not, but the real estate will.” Fertitta has been called the “World’s Richest Restaurateur” (6) for treating the hospitality industry as an extension of the real estate business.