Fertitta Reportedly Tops Icahn With $7B Caesars Bid

Roughly two weeks after reports emerged that Caesars Entertainment could be exploring a sale, takeover speculation intensified after billionaire Tilman Fertitta reportedly submitted a higher offer than rival investor Carl Icahn, potentially setting up a bidding contest for one of the largest casino operators in the United States.

According to a report by The Wall Street Journal, Fertitta’s company, Fertitta Entertainment, is in discussions to acquire Caesars for roughly $7 billion. The discussions reportedly involve a price of about $34 per share. The offer would exceed a competing bid from Icahn Enterprises, which reportedly proposed an all-cash offer of around $33 per share.

However, the Journal noted that “an announcement between the two sides isn’t imminent, and it is possible the talks won’t result in any deal.” The report also notes that Caesars hasn’t officially rejected Icahn Enterprises’ offer.

Market Reaction Extends Caesars Rally

The report immediately boosted Caesars’ stock. Shares rose nearly 12% Wednesday to $29.07 following the publication of the Journal’s exclusive. That gives the company a market value of about $5 billion.

Fertitta’s reported $34 offer represents a premium of more than 30% compared with Tuesday’s $26.01 closing price and roughly 17% above the $29.07 price after the Journal report.

The 12% surge follows a similar rally in late February after the Financial Times first reported that Caesars might be weighing takeovers and interest involving Fertitta. That report sent Caesars’ shares up roughly 19%.

Despite those gains, Caesars’ stock had been down 40% over the past year before the Financial Times report. For the past five years, the stock has been down over 70%.

Enterprise Value Still Exceeds $30 Billion

Caesars’ balance sheet complicates any potential acquisition.

At the end of 2025, the company reported roughly $11 billion in net debt. In addition, long-term property leases with VICI Properties generate annual rent obligations exceeding $1.2 billion.

Those financial commitments push Caesars’ enterprise value above $30 billion. That means any acquirer would effectively be buying a heavily leveraged operator with substantial fixed financial obligations.

Caesars’ real estate structure also adds complexity. The company spun off its property portfolio into VICI Properties following its 2017 bankruptcy restructuring and now leases those assets back.

However, the Journal reported that both Fertitta and Icahn have structured proposals that could allow Caesars to split certain assets without requiring VICI’s approval.

Governance and Sports Betting Implications

Fertitta already controls a major hospitality and gaming portfolio through Fertitta Entertainment, which includes the Golden Nugget chain and the restaurant group Landry’s. He also owns the NBA’s Houston Rockets and is the largest shareholder in Wynn Resorts.

His Wynn stake could attract regulatory scrutiny if he were to acquire Caesars, as gaming regulators typically limit overlapping control of competing casino operators in the same jurisdictions. As a result, Fertitta may potentially need to reduce or sell his Wynn stake if a Caesars acquisition proceeds.

His ownership of the Rockets will likely lead Caesars Sportsbook to remove Rockets bets. Under NBA integrity rules, sportsbooks majority-owned by a franchise owner generally cannot offer wagers on that owner’s team. Before Fertitta sold Golden Nugget Online Gaming to DraftKings, the digital sportsbook couldn’t offer Rockets bets.

Fertitta’s current role as U.S. ambassador to Italy and San Marino could further complicate the deal. While he remains the owner of Fertitta Entertainment, as a U.S. ambassador, he cannot be involved in day-to-day business operations. That means he cannot take part in the negotiations.

Icahn Reenters the Picture

Icahn also remains a familiar figure in Caesars’ history. He previously built a 15.6% stake in the company in 2019 and pushed for strategic changes that ultimately led to Eldorado Resorts acquiring Caesars in a $17.3 billion deal in 2020.

Icahn began reinvesting in Caesars in 2024 and has recently taken a more active role. Caesars appointed Icahn Enterprises CFO Ted Papapostolou and general counsel Jesse Lynn to the board in March 2025.

Icahn has also argued that Caesars’ digital division is “underappreciated” and could be worth between $4.6 billion and $7.6 billion as a standalone company. He has suggested that a potential spinoff could unlock value.