Could Caesars and MGM merge?

The Aria Resort & Casino in Las Vegas. Photo credit: MGM Resorts International

MGM Resorts International may be rolling the dice through a possible merger with Caesars Entertainment. 

Though no offer is confirmed to be on the table as of yet, MGM may have hired investment bank Morgan Stanley and law firm Weil, Gotshal & Manges to investigate the mechanics behind a merger, according to the New York Post.

Caesars and MGM both are chasing better times, with Caesars shares down 25 percent year over year and MGM down 15 percent over the same period. The possibility of a merger has appeared amid the announced departure of Caesars leader Mark Frissora. Frissora was vocally against a merger or buyout during his tenure at the company, but with his decision to step down by Feb. 8 the decision falls on activist hedge funds such as Canyon Partners, which owns leading stakes in both companies. 

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If the two gaming giants were to join forces, the combined company would command roughly half of the hotel room inventory in both Las Vegas and Atlantic City, N.J.

Caesars recently deflected an offer from billionaire Golden Nugget owner Tilman Fertitta, but that doesn’t mean the company is not considering its options. MGM is currently valued at roughly $30 billion, and Caesars at $22 billion.

Neither Caesars nor MGM could be reached for comment at this time.