A merger between Eldorado Resorts and Caesars Entertainment could be happening, according to a CNBC report.
Eldorado Resorts owns 12 U.S. casinos in 12 states, including El Dorado Resort Casino in Shreveport, while Caesars Entertainment owns the Harrah’s and the Horseshoe brands, which includes Horseshoe Resort Casino and Harrah’s Louisiana Downs, both in Bossier City.
Caesars has $5.4 billion in market capitalization with $9.1 billion in debt while Eldorado has $3.6 billion in market capital and $3.3 billion in debt as of the end of December.
The rumors of a merger come after Caesars gave investor Carl Icahn, who owns almost 18 percent of the company, three board seats and input on the next CEO. CNBC reported that Icahn has been urging for Caesars to sell.
A source told CNBC that Caesars has provided limited confidential financial information to help Eldorado decide if the merger makes sense for the two companies. The merger would help the two companies compete against bigger casino groups including Wynn Resorts, Las Vegas Sands, and MGM Resorts International.
This is an ongoing story and BIZ. will report any developments or announcements as they occur.