Eldorado, Caesars stockholders vote to approve merger

The hospitality, gaming and entertainment giant founded the Shared Future Fund to provide a pathway to achieve philanthropic goals associated with combatting human trafficking.
The combined company will comprise around 60 properties when the deal goes through, including Caesars Palace in Las Vegas. Photo credit: Caesars Entertainment Corp.

Stockholders at Eldorado Resorts and Caesars Entertainment Corp. voted to approve Eldorado’s acquisition of Caesars. The transaction, expected to be consummated in the first half of 2020, is still subject to regulatory approval and other closing conditions.

News of the $17.3 billion acquisition broke earlier this year in June. At the time, the boards of directors for both companies had already unanimously approved the deal.

As previously reported by Hotel Management, when the deal goes through, the combined company will comprise approximately 60 casino-resorts and gaming facilities in the United States. Eldorado predicted, based on data from March 31, 2019, the combined company’s earnings before interest, taxes, depreciation, amortization and restructuring or rent costs will reach $3.6 billion.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

Though the combined company will keep the Caesars name, Eldorado will maintain control, with its Chairman Gary Carano, CEO Tom Reeg, COO, CFO and CLO all staying in their current roles. The combined company’s board of directors will consist of 11 members, six from Eldorado’s board of directors and five from Caesars’ board of directors.

“Eldorado’s combination with Caesars will create the largest owner and operator of U.S. gaming assets and is a strategically, financially and operationally compelling opportunity that brings immediate and long-term value to stakeholders of both companies," Reeg said in a statement in June. "Together, we will have an extremely powerful suite of iconic gaming and entertainment brands, as well as valuable strategic alliances with industry leaders in sports betting and online gaming. The combined entity will serve customers in essentially every major U.S. gaming market and will marry best-of-breed practices from both entities to ensure high levels of customer satisfaction and significant shareholder returns."

Suggested Articles

The company promoted Randy Taormina, former area managing director of the Dream hotels in New York City.

Celebrating the hotel company’s 45th year and his 80th on the planet, the owner/operator—and philanthropist—embodies a "hospitality heart."

The Hyatt Centric Reykjavík will not only be the first Hyatt-branded hotel in Iceland, but will be the company's debut the Nordic region as a whole.