Reports have emerged that Tilman Fertitta is in discussions to buy Caesars Entertainment for $7bn, fuelling previous speculation that he was interested in acquiring the casino brand.
The Wall Street Journal (WSJ) has reported that Fertitta, the billionaire owner of the Golden Nugget Casino and Fertitta Entertainment, is looking to pay around $34 a share to acquire the casino operator. This would top a reported competing offer from Carl Icahn‘s Icahn Enterprises of an all-cash offer of around $33 per share.
WSJ added that the offer has not been officially accepted nor rejected by Caesars, with the operator declining to comment about the reported takeover bid. Reuters also requested a comment from Fertitta, but he did not immediately respond. It is also possible that neither offer to acquire the operator would be accepted by Caesars.
Following the closing of markets on Wednesday, Caesars had a reported market capitalisation of $5.78bn, according to London Stock Exchange-compiled data.
Vegas slump
Like many other Las Vegas operators, Caesars has been impacted by softer visiting numbers on the Vegas Strip and has been reporting a net loss for the past four quarters.
Last month, the operator reported its financials for the fourth quarter of 2025, declaring net revenues of $2.9bn, up 4.4% compared to the same period last year (Q4 2024: $2.8bn). However, net loss for the quarter was $250m, down compared to a net income of $11m in 2024.
Las Vegas revenue was down 3.4% year-over-year to $1bn (Q4 2024: $1.1bn), regional revenue was up 4% to $1.4bn (Q4 2024: $1.3bn), Caesars Digital revenue rose by 38.7% to $419m (Q4 2024: $302m) and managed and branded revenue declined by 4.4% to $65m (Q4 2024: $68m). Same-store adjusted EBITDA for the quarter ended at $901m, up 2.2% YoY (Q4 2024: $885m).
At the time, Tom Reeg, Chief Executive Officer of Caesars Entertainment, commented: “Fourth quarter consolidated same-store adjusted EBITDA grew year-over-year, driven by Caesars Digital, which set a new quarterly record of $85m, stable results in our regional segment and a quarterly sequential improvement in operating trends in Las Vegas.
“As we look ahead to 2026, the brick-and-mortar operating environment remains stable, and we are expecting another year of strong net revenue and adjusted EBITDA growth in our Caesars Digital segment. When combined with lower capex and cash interest expense, 2026 is forecasted to deliver strong free cash flow that we expect to use to pay down debt and opportunistically repurchase our common stock.”
Partial pivot for Caesars?
The declines in performance may result in Caesars considering a potential brand sale. There are rumours of a possible management-led buyout as well.
However, it’s worth noting that Reeg has recently stated during the operator’s financial earnings call that a sale of Caesars Digital was unlikely.
He noted: “We will do what maximises value to shareholders over the long term. I would say, given what we have seen in valuations in the space over the past six to nine months, this does not seem like a market that screams you should come and offer some equity of any kind. So it’s unlikely you will see something in the near term.
“Our focus is on hitting our numbers, scaling the business, proving it is scalable, and we are still in the midst of that and making great progress. But in the current market environment, it is unlikely you will see us pursue a separation transaction.”
Fertitta is no stranger to the gaming space. With Golden Nugget already under his ownership, he also has a 12.3% stake in Wynn Resorts. At the time, Fertitta aquiring a stake in Wynn was a clear signal that he was looking to expand his footprint on the Las Vegas strip.
However, the newest rumours of a $7bn takeover of Caesars could see Fertitta’s plans of Las Vegas expansion come to fruition – pending the acceptance of his bid.
While speculation over a potential sale of Caesars continues to mount, questions are continuing to arise over whether a sale could be limited to the brand’s brick-and-mortar properties or whether Reeg could pivot and offload the digital assets too.
