According to numerous reports, the rumors of a great merger between two huge names of the industry – Golden Nugget Casinos and Caesars Entertainment – are becoming truer with each passing day.
Those closest to this matter claim that billionaire and Golden Nugget owner, Tilman Fertitta, has already approached the powers that be at Caesars with the intent of setting the wheels in motion.
Fertitta is also the owner of NBA franchise Houston Rockets and Landry's, restaurant and entertainment company and he is hoping that Caesars would acquire Golden Nugget. In this deal, Caesars' shareholders would also be shareholders in the company that arises after the merger...
...It remains to be seen if Casears would be interested in this business deal, as their market capitalization is estimated to be circa $6.3 billion which is higher that Fertitta's net worth - $4.5 billion, according to Forbes.
Caesars was officially declared bankrupt last year and since emerging from this bankruptcy they have completed several purchases. They have had $25 billion in debt, which has now been reduced to $9 billion...
...Right now, their owners are focused on buying Jack Entertainment LLC, Dan Gilbert's casino company whose wroth is less than that of Fertitta - $3 billion.
Caesars already operates 49 casinos in 12 US states and abroad and is slowly improving their profitability and paying their debts as they try to catch on with MGM Resorts and Wynn Resorts...
...Also, they were heavily involved with US' booming sports betting market with the signing of numerous sportsbook deals. Numerous US states have, besides giving green light to sports betting, decided to go down the route of online gambling which is another option for the company to exploit.
Ceasars' shares have rose by 8% since the news of the possible purchase of Golden Nugget and Jack Entertainment. The company has forecasted a Q3 growth slower than that in the second quarter.
Late last year, Caesars purchased the privately-owned casino and horse racing company Centaur Holdings for $1.7 billion and have, as a result, expanded their reach to Indiana...
...On the other hand, Golden Nugget has opened a sportsbook in Atlantic City in September and have attracted SBTech to supply their full software portfolio especially in terms of sports betting, as well.
In late September, Caesars has appointed Monica S. Digilio a new Chief Human Resources Officer – a professional with many years of experience on similar positions, she will also serve in a role of Executive Vice President for the company...
...She has abandoned her position with Montage Hotels and Resorts where she served in same capacity since 2012
Caesars' CEO, Mark Frissora, commented her appointment: “Monica will help us recruit, engage and develop U.S. and international work forces while ensuring our talent strategies are fully aligned with Caesars overall business objectives.”
Source:
“Exclusive Casino mogul Fertitta approaches Caesars about merger – sources”, reuters.com, October 17, 2018.