Weekly Corporate Growth Report: Harrah's Entertainment to Acquire Caesars Entertainment for 1.16 Tim

The Deal: Harrah's Entertainment Inc. has agreed to acquire Caesars Entertainment Inc. in a cash and stock deal worth more than $5 billion. Under the terms of the agreement, Caesars shareholders will receive $1.8 billion in cash and 66.3 million shares of Harrah's entertainment common stock. Based on recent closing prices, the deal values Caesars at $16.96 per share. Harrah's will also assume about $4.26 billion in debt. The boards of directors of both companies have unanimously approved the deal. Approvals are still required from the shareholders of both companies and from regulatory authorities.

Discussion: Caesars Entertainment owns 28 resorts in five countries. The company owns major Las Vegas casino attractions including Bally's Las Vegas, Caesars Palace, and Paris Las Vegas. The company also owns casinos in Atlantic City, Mississippi, Louisiana, and Indiana, as well owning stakes in casinos in Canada, South Africa, and Uruguay. Caesars has casino management contracts in Australia.

Harrah's Entertainment owns, operates, and/or manages 28 casinos in 13 states. Company operations include casino hotels, dockside and riverboat casinos, and Indian gaming establishments. Harrah's establishments operate under the Harrah's, Harveys, Players, Showboat, and Rio names.

The combined company will be the largest gambling company in the world, with approximately $8.8 billion in annual revenue and as many as 54 casinos across the United States.