The iconic Caesars Entertainment, a name synonymous with the Las Vegas Strip since its 1966 debut, is slated for acquisition by Fertitta, the company behind the Golden Nugget and restaurant chains such as Rainforest Cafe and Morton’s.
Fertitta Entertainment will pay $5.7 billion and take on close to $12 billion in debt from Caesars, putting the total value of the deal at about $17.6 billion.
This translates to a $31 cash payout for each Caesars share, representing a substantial 49% premium over the stock price before merger discussions began in February.
Despite its modern-day prominence, Caesars’ origins trace back to Reno, Nevada, in the 1930s.
As part of the acquisition agreement, Caesars retains the right to solicit competing bids until July 11.
Shares of Caesars Entertainment Inc. saw a nearly 2% increase before Thursday’s opening bell, having already climbed 15% since initial merger rumors surfaced.
In another change at the Strip, long-time restaurant Heart Attack Grill, which held a Guinness World Record for the Most Calorific Burger Commercially Available, closed after 15 years.
A message on the self-described “world’s most controversial” restaurant’s website said Heart Attack Grill’s decision not to renew its long-running lease was driven by rising costs across downtown Vegas, which ultimately made continued operations unsustainable.
The eatery was known for extreme menu items like the Quadruple Bypass Burger at nearly 10,000 calories and the Octuple Bypass Burger, which reached nearly 20,000 calories.
Patrons were referred to as “patients,” while staff dressed as nurses to reinforce the hospital theme. The restaurant’s other trademarks included oversized portions and interactive gimmicks such as paddle-spanking customers who did not finish their meals. Guests weighing over 350 pounds ate for free, while those who completed the largest menu challenges were given a “wheelchair escort” out of the building.
The changes come as Las Vegas is experiencing one of its steepest drops in tourism since the COVID-19 pandemic, according to the Las Vegas Convention and Visitors Authority.
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