MGM and Caesars rumoured to be exploring merger opportunity
MGM Resorts and Caesars Entertainment could be looking into a potential merger between the operators.
The New York Post reports investment bank Morgan Stanley and law firm Weil, Gotshal & Manges, have been hired to look into the possibility of merging the two gaming giants.
Both operators declined to comment when contacted by Gambling Insider.
A source with direct knowledge is reported by the New York Post as saying: “Everyone knows that without a CEO, Caesars is in play.”
Owners of 25% of Caesars, Activist hedge funds are keen on the MGM deal, according to the source.
If the deal is concluded, there could be regulatory concerns, as a merger between the two would see an intense concentration of venues under one brand.
MGM may not be the only suitors for Caesars; sources say Wynn Resorts may table a bid if it is able to keep its license to build in Boston, and Malaysia’s Genting Group, owners of Resorts World, may also be interested.
While it is currently in negotiations to buy some of Jack Entertainment’s Ohio casinos, Caesars recently rejected a takeover offer from Tilman Fertitta’s Golden Nugget casino chain.
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