Casino Giant Caesars Stock (CZR) Surges as Billionaires Launch Takeover Battle

Shares in Caesars Entertainment CZR +11.76% ▲ , which operates the largest number of casino properties in the U.S., jumped about 12% on Wednesday. This followed a report by the Wall Street Journal that billionaire Tilman Fertitta made a roughly $7 billion counteroffer for the resort chain operator.

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Fertitta Entertainment Makes $7 Billion Buyout Offer

The offer from Fertitta’s firm, Fertitta Entertainment, breaks down to about $34 per share, topping an all-cash offer of roughly $33 per share from billionaire Carl Icahn’s Icahn Enterprises IEP +1.87% ▲ , the outlet said, citing insider sources. The company is reported not to have made a decision yet on the lower offer.

Caesars operates dozens of resort brands, including the flagship luxury and high-end dining brand Caesars Palace. It also owns brands such as Harrah’s, Horseshoe, Eldorado, and Tropicana.

Fertitta’s bid would fold Caesars into Fertitta Entertainment’s broader empire, which includes the Golden Nugget casino chain, the Landry’s dining‑hospitality‑gaming group, and the basketball club Houston Rockets. On the other hand, Icahn Enterprises operates as a diversified conglomerate with investments in energy, real estate, automotive, and food packaging, among others.

Caesars Confronts Softer Leisure Demand, Prediction-Market Jitters

The offer comes as Caesars continues to show consistent revenue growth, but operating profit from same-store sales remains a challenge due to lower occupancy of its properties in Las Vegas — the result of softer leisure travel bookings. Moreover, CZR has only gained about 6% over the last 12 months, as the rise of popular online prediction marketplaces such as Polymarket has spooked investors.

Meanwhile, shares of Vici Properties VICI -3.04% ▼ , which owns much of the real estate underpinning Caesars’ operations, fell on the news. The real estate investment trust was created in 2017 as part of the bankruptcy reorganization of Caesars’ operating unit.

Some investors see Vici as a likely complication for potential buyout efforts, especially regarding plans to carve out Caesars’ digital gaming operations. However, the new proposals are being tailored to not require the trust’s consent, the outlet reported.

Is CZR a Good Stock to Buy?

On Wall Street, analysts approach Caesars Entertainment’s shares with caution and have a Moderate Buy consensus rating on the stock. This is based on eight Buys and six Holds issued over the past three months.

Moreover, the average CZR price target of $30.36 implies just about 4% upside.

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