'While I criticized the Caesars Board when I took a major position several months ago, I would now like to do something that I rarely do, which is to praise a board of directors for acting responsibly and decisively in negotiating and approving this transformational transaction,' Icahn said in a statement Monday. Rodio had the same role at the billionaire's Tropicana Entertainment, which was sold to Eldorado in 2018. Icahn in April appointed Tony Rodio as CEO of Caesars Entertainment. He argued that the company's stock was undervalued and the best way to boost it would be to sell the company.Ĭaesars Entertainment Corp., which operates more than 30 casinos in the U.S., emerged from bankruptcy protection in late 2017, but it's been struggling since. Icahn earlier this year revealed he had amassed an enormous stake in Caesars Entertainment and pushed for fundamental changes at the company, including board representation and a say in the replacement of the then-CEO. Headquarters will be in Reno, Nev., where Eldorado is based, and the company will have a significant corporate presence in Las Vegas, where Caesars is based. The company will be led by Reeg, along with Eldorado Chairman Gary Carano. will hold about 51% of the company's outstanding stock, with Caesars Entertainment shareholders holding the remaining 49%. The transaction values Caesars at about $8.6 billion, and Eldorado will pick up about $8.8 billion of the casino's debt. 'It's really a level of property and brand that we have not had the great fortune to control and now we will.'Įldorado will pay $8.40 per share in cash and 0.0899 shares of Eldorado stock for each Caesars share, or $12.75 per share. This is an iconic brand,' Eldorado Chief Executive Officer Tom Reeg said, referring to Caesars Entertainment during a conference call. It would open the doors of the Las Vegas Strip market to Eldorado. The deal - following pressure from activist investor Carl Icahn - is targeted to close in the first half of 2020 if approved by gambling regulators and shareholders. The acquisition will put about 60 casino-resorts in 16 states under a single name, Caesars, creating the largest gambling operator in the United States.

in a cash-and-stock deal valued at $17.3 billion. A casino juggernaut was formed Monday when Eldorado Resorts announced it is buying Caesars Entertainment Corp.

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