Caesars Entertainment and Eldorado Resorts Merger Completed

The largest casino operator in the U.S. was born on Monday. The deal fusing Eldorado Resorts (NASDAQ: ERI) and Caesars Entertainment (NASDAQ: CZR) has closed, the combined company announced in a press release.

The announcement is the culmination of a deal that was first reported in June 2019 and subsequently had to win a set of regulatory approvals. The arrangement was valued at roughly $17.3 billion at the time it was agreed, split between $7.2 billion in cash and 77 million shares of Eldorado stock.

A woman plays a slot machine.

Image Source: Getty Images.

In addition to effectively acquiring Caesars, Eldorado also agreed that the merged company would assume Caesars' approximately $8.8 billion in debt.

The combined company, which has taken on the better-known Caesars Entertainment name, owns and operates nearly 60 casinos around the world. Eight of these are located on the Las Vegas Strip. All told the beefed-up company is active in 16 U.S. states. It also operates properties abroad in such markets as Dubai and England.

Caesars quoted its new CEO Tom Reeg as saying that the blended company "look[s] forward to executing on the numerous opportunities ahead to create value for all stakeholders."

The Caesars buyout was the last in a string of deals made by Eldorado, once a relatively obscure company in the casino space. In May 2017, it closed on the acquisition of onetime peer Isle of Capri Casinos, and in October 2018, it completed the buyout of Tropicana Entertainment -- like Caesars, a storied name on the Las Vegas casino scene.

Although Eldorado stock should soon be delisted, it nevertheless traded up by 0.6% on Monday, lagging behind the gains of the wider equities market and numerous peer consumer goods stocks. Shares of Caesars dipped by 0.4%.

10 stocks we like better than Caesars Entertainment
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Caesars Entertainment wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of June 2, 2020


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.