Harrah’s Entertainment Inc. (Las Vegas) has signed a definitive agreement to acquire Caesars Entertainment Inc. (Las Vegas), in a cash and stock transaction that would be the largest in gaming-industry history.
Under terms of the agreement, Caesars shareholders will receive an aggregate of $1.8 billion in cash and 66.3 million shares of Harrah’s common stock. The boards of both companies have unanimously approved the transaction, which remains subject to approvals by the companies’ shareholders and regulatory agencies.
Caesars, formerly Park Place Entertainment, was the world’s largest casino gaming company, with $4.5 billion in annual net revenue and 28 casinos and hotels — most prominently Las Vegas’ Caesars Palace and its Caesars Forum Shops retail center, but also Bally’s, the Flamingo and Paris — with about 2 million square feet of gaming space and approximately 26,000 hotel rooms. Harrah’s, which was Number Three (MGM Mirage Inc. is second), had about $4.1 billion in revenue in 2003 and 28 casinos in operation with about 1.7 million square feet of gaming space and approximately 15,650 hotel rooms.