Caesars Entertainment Inc: CZR agrees to be acquired by Fertitta Entertainment

Research evidence excerpt

Caesars Entertainment Inc: CZR agrees to be acquired by Fertitta Entertainment

Accessible version

Caesars Entertainment Inc

CZR agrees to be acquired by Fertitta

Entertainment

Maintain Rating: NO RATING | PO: NA | Price: 29.08 USD

CZR agrees to be acquired by Fertitta Entertainment 29 May 2026

Caesars Entertainment (ticker: CZR) agreed to be acquired by Fertitta Entertainment for Equity

$5.7B, or $31/share. This price reflects a 2026E EV/EBITDA multiple of 7.2x and free

cash flow yield of 17%. The transaction is not subject to a financing condition and will Shaun C. Kelley Research Analyst

be financed through new equity by Fertitta Entertainment, CZR debt, and new debt BofAS

financing from 10 banks. Bottom line: Shares of CZR traded up slightly on the news. +1shaun.kelley@bofa.com646 855 1005

Reports of a transaction started in March, with Carl Icahn reportedly (CNBC) offering Julie Hoover

$33/share and Fertitta offering ~$32/share. Because of ongoing transaction discussions, Research Analyst

BofAS

we previously moved to No Rating (see our report), which we maintain in light of the +1 646 855 0674

acquisition announcement. julie.hoover@bofa.com

Agreement includes go-shop period

CZR’s and Fertitta’s agreement includes a “go-shop” period through July 11. During this Stock Data

period, CZR can solicit, consider, and negotiate alternative acquisition proposals. In

addition to interest from Fertitta, CNBC reported that Carl Icahn offered $33/share in Price 29.08 USD

March. According to the CNBC report and our own discussions with investors, given Price Objective NA

Icahn’s existing stake in CZR, some investors viewed Icahn’s bid as a stalking horse to Date Established NA

drive the price higher. Investment Opinion -6-