(Reuters)
NEW YORK -- Harrah's Entertainment Inc. on Thursday said it would buy rival Caesars Entertainment Inc. for about $5.2 billion in cash and stock in a deal that would create the world's largest casino operator and solidify its presence in Las Vegas.
Harrah's said it would pay $1.8 billion in cash plus 66.3 million of its shares, worth about $3.4 billion, valuing Caesars shares at $16.96 each, according to terms approved unanimously by the boards of both companies.
Including the assumption of Caesars debt, the deal would be worth about $9.4 billion. Harrah's said it sees $80 million of synergies in the first full year after completion.
The two casino operators, already the largest in the United States, would collectively own more than 50 casinos and have a strong presence in most major legalized U.S. gambling market.
Harrah's, known as a savvy marketer and regional operator, would also gain control of the Caesar's Palace brand, one of the leading names in the industry and a formidable presence on the Las Vegas strip.
The takeover agreement offers a strong retort to competitor MGM Mirage, which signed a deal last month to acquire Mandalay Resort Group for $4.8 billion. That deal, if it received regulatory approvals, would give MGM control of 10 major properties on the Las Vegas Strip along with about half of the Strip's hotel rooms.
Harrah's proposed takeover of Caesars now puts two mega-casino deals in front of federal and state regulators. But while the companies on both deals might have to sell some assets, many analysts have said both mergers have a good chance of passing muster.
NEW YORK -- Harrah's Entertainment Inc. on Thursday said it would buy rival Caesars Entertainment Inc. for about $5.2 billion in cash and stock in a deal that would create the world's largest casino operator and solidify its presence in Las Vegas.
Harrah's said it would pay $1.8 billion in cash plus 66.3 million of its shares, worth about $3.4 billion, valuing Caesars shares at $16.96 each, according to terms approved unanimously by the boards of both companies.
Including the assumption of Caesars debt, the deal would be worth about $9.4 billion. Harrah's said it sees $80 million of synergies in the first full year after completion.
The two casino operators, already the largest in the United States, would collectively own more than 50 casinos and have a strong presence in most major legalized U.S. gambling market.
Harrah's, known as a savvy marketer and regional operator, would also gain control of the Caesar's Palace brand, one of the leading names in the industry and a formidable presence on the Las Vegas strip.
The takeover agreement offers a strong retort to competitor MGM Mirage, which signed a deal last month to acquire Mandalay Resort Group for $4.8 billion. That deal, if it received regulatory approvals, would give MGM control of 10 major properties on the Las Vegas Strip along with about half of the Strip's hotel rooms.
Harrah's proposed takeover of Caesars now puts two mega-casino deals in front of federal and state regulators. But while the companies on both deals might have to sell some assets, many analysts have said both mergers have a good chance of passing muster.
