Caesars Entertainment, Inc. Refreshing Our Takeout Math as Potential Deal Picture Becomes Clearer

Research evidence excerpt

Caesars Entertainment, Inc. Refreshing Our Takeout Math as Potential Deal Picture Becomes Clearer

J P M O R G A N North America Equity Research

15 May 2026

Caesars Entertainment, Inc. Overweight

CZR, CZR US

Refreshing Our Takeout Math as Potential Deal Picture Price (14 May 26):$27.16

Becomes Clearer

Gaming & Lodging

Daniel Politzer, CFA AC

(1-212) 622-0110

daniel.politzer@jpmorgan.com

Samuel Nielsen

(1-212) 622-1366

samuel.nielsen@jpmchase.com

We continue to think a potential CZR takeout in the low/mid-$30s range is rational

Michael Hirsh, CFA

and achievable. With further detail on a potential deal structure emerging in recent

(1-212) 622-0295

weeks, we refresh our CZR takeout math (originally published April 20th, see here). michael.hirsh@jpmchase.com

According to the FT and Bloomberg, Tilman Fertitta is reportedly planning to J.P. Morgan Securities LLC

acquire CZR, with indications that CZR's management team may join the deal by

rolling some/all of their equity stakes so as to share more directly in CZR’s

attractive FCF profile. Recall, Tilman Fertitta owns Landry’s Entertainment and

Golden Nugget casinos; he also considered acquiring CZR in 2018 (pre-Eldorado).

While a potential deal is still “several weeks away and there [are] still significant

hurdles to overcome,” investors have become antsy, as the negotiating window has

been extended and interest rates have recently moved higher.

With CZR at $27/sh and a potential takeout in the low/mid-$30s (our YE26 PT is

$35), we estimate the market is ascribing ~55% deal probability. Given the state

approvals likely to be required, we think a deal could take 9-12 months to close

(similar to other larger Gaming M&A). CZR has not commented on the news

reports of a potential takeout.

• Deal Math (see Figs 2-3).