Caesars Entertainment Corp. is nearing a deal to combine with rival casino operator Eldorado Resorts Inc., the Wall Street Journal reported. Caesars and Eldorado have been finalizing a cash-and-stock deal that could be announced later this month assuming the talks don’t fall apart. Other suitors have been circling Caesars and it is possible one of them could still emerge as the winner, although Eldorado is currently the front-runner. Should Eldorado succeed in striking a deal, its management is expected to lead the combined company. Caesars is one of the world’s largest gambling companies, with around 50 casinos in 13 states and five countries. Its properties include Caesars Palace, Harrah’s and others on the sought-after Las Vegas Strip. The company, whose operating unit filed for bankruptcy in 2015, has a market value of roughly $6 billion and around $9 billion in long-term debt. That compares with a market value of about $4 billion and debt of more than $3 billion for Eldorado, which has more than 25 properties, primarily outside of Las Vegas. Eldorado or the combined company would likely have to take on additional debt to finance the combination. Others that have looked at Caesars include Golden Nugget LLC, billionaire Tilman Fertitta’s closely held casino company, and Boyd Gaming Corp. Boyd, which operates about 30 gaming properties in 10 states, is still in the running though the odds it will prevail are slim.
