Four years ago, Houston billionaire Tilman Fertitta gained a major foothold on the Las Vegas Strip with an expensive real estate purchase.
He then acquired shares in Wynn Resorts and became its largest shareholder. And now, with a blockbuster deal unveiled Thursday, he’s hurtling toward the top of Las Vegas’ famed casino corridor.
His conglomerate Fertitta Entertainment reached an agreement to acquire casino giant Caesars Entertainment for $5.7 billion plus the assumption of nearly $12 billion in debt, bringing the total transaction value to $17.6 billion.
In their press releases Thursday, neither company said when the deal is expected to close.
The transaction could be subject to heavy regulatory scrutiny, given Fertitta’s existing ownership in two separate casino operators: Wynn and the Golden Nugget chain. Additionally, his deal with Caesars includes a “go-shop” period through July 11 that allows the seller to consider other proposals.
But if Fertitta — currently the U.S. ambassador to Italy — buys out Caesars, he would become one of the biggest players on the Strip.
Caesars is the second largest casino operator on the Strip with eight properties, including Caesars Palace, Harrah’s, Horseshoe Las Vegas, Paris Las Vegas, Planet Hollywood and Flamingo.
In addition, Wynn owns two luxury towers on The Strip: Wynn Las Vegas and Encore.
By comparison, rival MGM Resorts International is the largest casino operator on Las Vegas Boulevard. It has nine resorts along the Strip — a list that includes, but does not count separately, such non-gaming towers as Vdara and W Las Vegas.
This is a development story. Check back for updates.
Contact Eli Segall at esegall@ theplayerlounge.com or 702-383-0342.
