ERI - This $17.3 Billion Casino Acquisition Could Be in Trouble
In June 2019, Eldorado Resorts (NASDAQ: ERI) announced its plan to acquire Caesars Entertainment (NASDAQ: CZR) -- a bigger casino operator that owns nearly half of the resorts on the Las Vegas Strip -- for $17.3 billion. The purchase would require $7.2 billion in cash, 77 million shares of stock, and assumption of Caesars' debt. It was an ambitious move, but with the backing of Carl Icahn, it seemed like a good idea for everyone.
What nobody could have anticipated was that all of those resorts and casinos would be shut down by a pandemic just as the merger's closure date was approaching. Both companies say the deal will still get done in the next few months, but there are some risks that investors should be aware of.
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