Eldorado Resorts has Agreed to Buy Caesars Entertainment Corp.

According to a source close to the situation, Eldorado Resorts Inc. has agreed to purchase Caesars Entertainment Corp. for roughly $8.7 billion in a cash and stock transaction.

The deal values Caesars at about $13 a share, according to the unidentified source.

With assuming Caesars debt, the transaction would be valued at about $18 billion and the combined entity will be split almost equally between shareholders of both companies.

According to the source, the deal is not yet public and will be announced on Monday.

Compared to Caesar’s closing price this past Friday the price in the deal represents a 30% premium.

Activist billionaire Carl Icahn has been pushing for a sale of Caesars. He is the company’s biggest shareholder.
Eldorado shares have risen 17% in the past year while Caesaer has seen a 12% decline.

Caesars owns the properties Caesars Palace and the Harrah’s chain.

Disclaimer: We have no position in Caesars Entertainment Corporation Common Stock (NASDAQ: CZR) and have not been compensated for this article.