Caesars Stock Rallies 19% on Buyout Speculation as Billionaires Eye Casino Giant

  • FT sources said that the prospects of a deal happening are far from certain
  • Caesars Entertainment’s share price rose 19% on the back of the speculation
  • Tilman Fertitta and Carl Icahn are two major investors with an interest in Caesars
Caesars
Caesars Entertainment is subject to several attractive offers. [Image: Shutterstock.com]

A long shot

Caesars Entertainment is currently considering several takeover offers, if reports are to believed.

The Financial Times reported that billionaire Tilman Fertitta, who owns the Golden Nugget casino chain, is among the interested parties. Another option is for the current Caesars management to lead a buyout of the company.

would likely require significant financial support from Wall Street banks

The Financial Times sources said that the possibility of a deal “is far from a foregone conclusion” and that negotiations might fall apart. They also noted that an acquisition would likely require significant financial support from Wall Street banks due to the significant lease and debt liabilities.

Recent struggles of Caesars

The Caesars Entertainment share price rose 19% after the publication of the speculation on Thursday. The stock is still down 73% over the past five years.

There are several reasons for the underwhelming performance of the Nevada-based company. Investors have concerns over the heavy debt load from the 2020 merger with Eldorado Resorts. Current company net debt is $11bn, which resulted in $2.4bn in interest payments last year.

operates more than 50 properties across 19 states

There’s also the well-documented 8% drop in visitors to Las Vegas last year as consumers tightened their spending. Caesars has major exposure to the US market, where it operates more than 50 properties across 19 states.

Caesars has also not made much headway with its online sportsbook, leading investors to call for a spinoff of Caesars Digital and a focus on the core business. Then there were several quarters recently in which Caesars missed Wall Street expectations, hurting investor confidence.

Prospective buyers

Tilman Fertitta has also built up a significant stake in Wynn Resorts. He controlled 12.3% of the rival company as of April 2025. This could raise competition concerns if the current US ambassador to Italy is successful in a takeover of Caesars.

Another major investor who has shown interest in Caesars recently is Carl Icahn. He previously held a 10% stake in the company and was a key driver of the Eldorado deal before exiting following the July 2020 merger.

believes the digital business has significant potential and could be worth between $4.6bn and $7.6bn

He has started building up another stake in the company over the past couple of years. Two board seats are now held by Icahn Enterprises. He believes the digital business has significant potential and could be worth between $4.6bn and $7.6bn if it were a standalone entity.

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