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Eldorado Resorts - $18 billion cash and stock deal for Caesars

Discussion in 'Casino Industry & Development' started by azmetfan1, Jun 23, 2019.

  1. azmetfan1

    azmetfan1 Tourist

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    Last edited by a moderator: Jun 23, 2019
  2. jdokes48

    jdokes48 Tourist

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  3. VegasBJ

    VegasBJ VIP Whale

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    what happened to the roughly @ $8b of book value that valued CZR at $26b, including debt?
     
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  4. waverunner

    waverunner ------VEGA$------

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    Official announcment Monday. El Dorado and CZR shareholders agree to merge. Hopefully PHO, LinQ, Cromwell, and Flamingo get sold....Harrah's, Bally's, Paris, and Caesars Palace remain CZR?
    Or am i wrong?
    I don't have tech knowledge about the two companies......but i'm hoping that at least Caesars Palace, Bally's, and Paris remain CZR properties.
     
  5. nostresshere

    nostresshere Mr. Anti Debit Card

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    This should be interesting. A merger vs buy-out...or at least based on the unofficial report.

    As to selling any properties... that of course requires a BUYER. And not just an interest, but one with the right amount of money. So, any sales could take time.

    Add in whatever details yet to come out on players programs, various assets that are or are not part of CET and this whole thing can get messy and.

    The only thing for sure in all of this is that the "Wheel of Rumors" is about to spin right off it's axis!
     
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  6. fasbman

    fasbman Low-Roller

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    Just remember that nothing will happen overnight, Between the shareholder approvals and various state and federal approvals, this will take a while to consummate. I can't see anything happening to players club merging until 2021 at the absolute earliest, and more probably 2022 or later.
     
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  7. mhetrick

    mhetrick Low-Roller

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    Very true, these things take awhile. I'm going to be interested to see what happens in Vegas, but more interested in how Louisiana gaming will handle this in the Shreveport/Bossier City market. CET has 2 props (Horseshoe & LA Downs) and Eldorado has their Shreveport property. That'd be 3 properties which would probably combine to be more than 50% of the revenue in the market.
     
  8. ffejry

    ffejry #1 Bears Fan

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    So.. our comps are gone? What has happened, traditionally, in these cases?
     
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  9. Patman

    Patman High-Roller

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    Way too early and not nearly enough information to even guess as to what, when or how. Probably won't be able to tell a lot of things until something actually changes. People can speculate what might make sense but the companies will have more information than the public to make a decision and even then may not make the logical decision based on some other factor.

    It was interesting to read the article indicating Eldorado had a market valuation of about $4B and CET about $18B based on the deal. We will probably find out tomorrow how much is the cash component and to see how much each share in each of the the two companies would be worth under a new merged company.

    i was a little concerned about whether my play this year would be lost if CET was sold. But looking at this deal, I'm feeling more comfortable that at some point when it happens, they might keep the Caesars reward platform given the relative size of the 2 programs. It wouldn't make sense to move all the CET players to the El Dorado platform or to move all players to a completely new system. That doesn't mean the comps may not decrease as CET was already saying they are doing now. Just that we might not need to move or be moved to a new players club system. When MGM took over 100% of Borgata, they eventually moved everyone to Mlife (but not without quite a bit of pain).
     
    Last edited: Jun 23, 2019
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  10. Maxbet

    Maxbet Low-Roller

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    Another board says PH is not part of the deal. Vital Vegas posted a few weeks ago that the owner of SLS/Sahara was rumored to be buying another strip property. I guess we will know more Monday and in the coming weeks.
     
  11. NewOrleansSlimm

    NewOrleansSlimm VIP Whale

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    it was stated that Rio and PH would be sold off to pay off some of the debt and maybe even a few other Vegas properties...scott at VV also stated that some interested parties for a strip property are, SLS.Sahara owner as you stated, tillman fertitta landrys/GN , Mohegan sun, hard rock Seminoles and affinity gaming
     
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  12. michael cadena

    michael cadena High-Roller

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    Anyone care to speculate on the good that can. Come from this ?
     
  13. NewOrleansSlimm

    NewOrleansSlimm VIP Whale

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    with less rooms available once we figure what gets sold off, it wont be as easy to get a room with CET/Eldorado in Vegas, yet there will be real competition to get you in the door, it will take a lil while but should be better for the player
     
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  14. TableToddyy

    TableToddyy High-Roller

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    Hoping for more strip competition ie Boyd, Stevens, Tillman, Stations, HR etc etc with a strip property.

    gonna miss CET though
     
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  15. The Rumor

    The Rumor VIP Whale

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    For players, having more operators mid Strip would generally be a good thing.
     
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  16. Wallew

    Wallew High-Roller

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    Very curious to see what will happen in Atlantic City. CET has harrahs, Bally’s and Caesars. Eldorado owns the Tropicana. That will give the new company 4 of the 9 casinos in town and 3 of the 6 on the boardwalk.
     
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  17. vegasqc

    vegasqc VIP Whale

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    How long does it take for a big deal like that to get approval and for things to change on the ground floor?

    I have a PH trip booked in September, i know that no matter what they will probably honor my comp, but i dont see a point in staying there if i have to do all my play and eat all my food and do all my spending at a competing property(whatever will remain of CET or maybe build a base a cosmo/wynn/venitian)
     
  18. vetsen

    vetsen Low-Roller

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    When Penn bought Pinnacle it took just under a year from announcement to deal close.
     
  19. Patman

    Patman High-Roller

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    Wait for the announcement tomorrow and the next many months.

    PH or any other casino may not get sold to fund the deal. That was a rumor a while back. If the original rumor was based on Eldorado buying out CET for full price then they would have to find $18B to do it. This is leaked at a merger with both existing shareholders ending up with roughly equal shares of the new company. Total value $4B for Eldorado and $18B for CET for a total of $22B. Half would be $11B so Eldorado would need to find $7B in funds. (assuming the information in the article is correct). They may not need to sell any more casino's or maybe no casino's in Vegas to pull the deal off. They may still decide to sell off some just to reduce their exposure. Or it was always going to be a merger and CET needs to sell off some assets to bring it's value down to the point where Eldorado can buy half.

    All just speculation.
     
  20. jhl3

    jhl3 Vegas Regular

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    Should see my shares of CZR get a nice pop!
     
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