It must have been a very tempting offer for the board of Caesars to consider, the one put forward by the owner of Golden Nugget that being Tillman Fertitta, for he proposed a potential merger between both companies, and as Caesars are eager to expand he may have thought there would be a very good chance of them taking him up on that merger offer.
However, after some very long discussions and the usual financial considerations, it has been decided that Caesars will not be merging with Golden Nugget after all.
There are, of course, many factors to take into account with any potential merger of two companies, and there is speculation that by accepting the offer it would end up leaving Caesars with too big of a debt pile and one that investors in that company were not prepared to take on.
Shares in Caesars did though, sky rocket by some 18% over two days as the merger talks were taking place, so the money markets were very positive above the potential tie up between the two companies, even if the board at Caesars weren’t.
The problem for Caesars is that they are still saddled with an enormous debt pile of around some $9billion, and they have only just emerged from bankruptcy too, so it was one gamble that they were not prepared to take.
Caesars are though, very bullish about a possible acquisition that will see them potentially buy some casinos from Jack Entertainment, which won’t saddle the company with too much debt, with the deal likely to cost around $1billion.
Steven is a seasoned freelancer writer from Coventry in the UK. He specialises in writing about the gambling industry and aims to provide unbiased, trustworthy and high quality content to the public. Whilst away from his freelance writing work he enjoys watching the football and following the F1.