Caesars Entertainment became part of Eldorado Resorts Corporation
An important event took place in the segment of U.S. hambling operators – Eldorado Resorts Corporation acquired Caesars Entertainment. The deal totaled $17.3 billion. Now the united company, which manages casinos and hotels across the country, overtook the market leader – MGM Resorts International. The acquisition of Caesars has enabled Eldorado to expand its assets to 55 real estate objects in 16 states. In addition, the corporation owns hotels and casinos in the UK and Dubai.
According to the terms of the deal, the Caesars brand will remain, and the company’s shares will be placed on the exchange, as it was before the purchase. The shareholders of the operator received about 12 dollars for each paper, 8.7% of which were in money. As a result of the merger, the shareholders of Eldorado received a total of 56% of the combined corporation.
The coronavirus pandemic brought huge losses to the casino segment. Due to quarantine measures, they suspended their work in March last year. After the abolition of restrictions, gambling establishments opened, but not all of them reached the pre-crisis level of income. In addition, for a long time the casino was not allowed to hold conferences and various events. In spite of the major acquisition, the quotations of Eldorado securities were falling. Last week, they fell by 1.7 percent. However, the statistics for the previous 3 months shows an increase of 130%, so the situation is not critical yet.
Caesars Entertainment is the third largest U.S. company, which is engaged in casinos. The operator’s annual profit is about $9 billion. The market has been operating for over 15 years, during which Caesars has grown from a small division of the Hilton hotel chain to one of the largest corporations, which owns assets in different countries. In the course of its development, the operator has expanded its assets, including by taking over competitors. One of the most significant deals was the acquisition of Harrah’s Entertainment.
Caesar belongs to gaming establishments in the center of the U.S. gambling – in Las Vegas, including such famous casinos as Caesar Palace, Harras, Paris, which includes a gambling house and hotel. In addition, the operator has facilities in Uruguay and implements a number of projects in other countries.
The beginning of the company’s activity dates back to the 40s of last century, when Hilton began to develop gaming business, and a separate business – Ceasars – was created for this purpose. At the same time, the first establishments that are listed in the company’s assets to this day appeared: Flamingo Las Vegas and Planet Hollywood. The type in which the operator now exists, it acquired in 1998, after a series of mergers and acquisitions, as well as registration of the brand Caesars Entertainment Corp.