Lookout, Atlantic City! Rumors have it, talks are going on between Caesars Entertainment and MGM Resorts of a possible merger! Which, is quite interesting considering that MGM is the parent company of the Borgata in AC.
|$10 FREE! Bonus Code - OCNJ10|
100% Bonus up to $1000!
Get Cashback on your Deposits
|Bonus up to $300|
All Popular NJ Games
Several Deposit methods
All this came to light after the departure announcement of Caesars CEO Mark Frissora, who plans to leave in February. As of now, there’s no word of a possible successor to Frissora. However, from the looks of things, this merger looks possible after considering the facts. Not to mention, the plan to merge also looks strategically well thought out. So, let’s dive into the details!
The Grand Plan
At the moment, there’s no official word of an offer, although it looks pretty obvious we’ll see one in the near future. According to sources, MGM hired Morgan Stanley and Weil’s law firm to carry out a study to find out what it’ll take to see a merger. The truth is, Hedge Funds owns a quarter of Caesars, which also includes Canyon Partners, who holds stake at MGM Resorts.
Furthermore, some casino analysts think these operators might be behind the push that led Frissora to announce his departure. If so, then this is one grand master plan! Also, a merger this big might worry regulators. And this is due to the fact, if MGM and Caesars merge, together they’ll control half of the hotel rooms in LV and AC! Now, that’s not a monopoly, so Caesars is definitely fair game!
Not as easy as it sounds
In brief, all eyes remain on Caesars! In fact, Golden Nugget also proposed a merger deal to Caesars recently. Although Caesars kindly declined the offer stating, “The board decided that the merger wasn’t consistent with Caesars plans to enhance shareholder value in the long term.” So as you can see, Caesars is definitely open minded to a possible merger with the right company.