Caesars Entertainment Inc: Agreement in principle to be acquired by Fertitta Entertainment

Research evidence excerpt

Caesars Entertainment Inc: Agreement in principle to be acquired by Fertitta Entertainment

mework

** = Based on consensus methodology

assumed CZR debt, and new committed debt financing arranged by a group of 10 § = Consensus data is provided by Refinitiv Estimates

e = Morgan Stanley Research estimates

banks. The agreement also includes a “go-shop” period through July 11, 2026, during ++ = Stock Rating, Price Target or Estimates are not available or have been

removed due to applicable law and/or Morgan Stanley policy.

which time CZR and its financial and legal advisors may solicit, consider and Quarterly EPS ($)

negotiate alternative acquisition proposals from third parties. Prior to a vote of the 2026e 2026e 2027e 2027e

Quarter 2025 Prior Current Prior Current

shareholders of Caesars, the Caesars Board of Directors have the right to cause the Q1 (0.46) - (0.41)a - (0.08)

company to terminate the agreement to enter into an alternative transaction Q2 (0.39) - (0.02) - 0.06

Q3 (0.19) - 0.05 - 0.16

providing for a superior proposal, subject to the terms and conditions of the Q4 (1.16) - (0.01) - 0.03

definitive agreement. e = Morgan Stanley Research estimates, a = Actual Company reported data

Our initial thoughts: While we take no position on the likelihood of a deal closing,

the announcement comes after several articles (see here and here) about a potential

deal over the last several months. None of the parties mentioned (Tillman Fertitta,

Carl Icahn or CZR) commented in response to those reports. We still heard some

debate in the investor community about financing potential and strength of interest

as time had passed. However, as we outlined in our thoughts when the articles

initially were published, Tilman Fertitta has previously purchased developable land