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Golden Nugget to Merge w/ Cesars?

Discussion in 'Vegas News' started by Goldenknight, Oct 17, 2018.

  1. Goldenknight

    Goldenknight Palladium

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  2. tringlomane

    tringlomane Theoretical Video Poker Addict
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    Considering how the Nugget runs things, they would be a good match. And it would definitely be a big deal for CET.

    But can CET afford it?
     
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  3. 44inarow

    44inarow Cool Story Bro

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    The article's discussion of relative worth seems to imply that Fertitta would be selling his entire holdings, which strikes me as unlikely -- the casino properties, sure, but I don't see CET getting into the aquarium business or the chain restaurant space.
     
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  4. Mr2BOBCATS

    Mr2BOBCATS Palladium

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    Amazing how a rumor like that causes the stock to go up 15%.

    Total Rewards (or whatever they are going to call it next year) downtown LV would be significant.

    I wonder how long it will take for all the casino operators to go with the "rising tide floats all boats" idea and link their reward programs in some way.
     
  5. UKFanatic

    UKFanatic Gold
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    I am skeptical. CET had the opportunity to own Binions and it took them all of, what, three days to sell the hotel property after they acquired it! Granted, different leadership now and its been more than a decade since then, but I suspect CET will focus more on the acquisition of the Jack brand. Regional markets seems to be their strategy more than acquiring additional vegas assets
     
  6. NickPappageorgio

    NickPappageorgio ¿Quién vigila a los vigilantes?
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    Agreed, that would be a huge departure for Caesars. Although I will say that having Landry's chain restaurants would help them fill space in their new "brand" hotels that they're planning, and opening, now.

    My guess is Tillman wants stock income and to be given a seat on the board. He'd make a mint and free up his attention to running the Rockets, which is his primary goal anyway.

    The problem is that this makes a ton of sense for Fertitta, but not a whole lot of sense for Caesars outside of the Golden Nugget brand and properties.
     
  7. NickPappageorgio

    NickPappageorgio ¿Quién vigila a los vigilantes?
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    If they just acquired the Golden Nugget brand then they would gain not only a DT Vegas property, but regional resorts as well.
     
  8. UKFanatic

    UKFanatic Gold
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    Yeah, I guess I didn't think about Lake Charles. That seems consistent with their past growth strategy. But what other markets? Just places they already are or have been.
     
  9. NickPappageorgio

    NickPappageorgio ¿Quién vigila a los vigilantes?
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    True. Thinking about the other locations: Atlantic City, Biloxi, Laughlin I don't see any "new" territory there for them. There used to be a Harrah's in Lake Charles, but I don't think that was pre-CET ownership. Of course, they have the Harrah's in New Orleans, so it wouldn't be new to Louisiana for them either.
     
  10. UKFanatic

    UKFanatic Gold
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    Yeah, I couldn't think of any markets, either. But who knows. The whole regional market approach was championed by old management. This deal could represent a new strategy
     
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  11. golfer

    golfer Gold
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    Better take is the local newspaper. CNBC, which is surprisingly unbiased in their business reporting, is divergent from the local newspaper, and also divergent from what I heard last week.

    I can’t really say more. We’ll have to wait to see if this works out, but suffice it to say, Fert selling everything is an alternate reality as it stands now.

    FWIW, you could see call and leap activity start in the dark pools months ago on this.
     
  12. golfer

    golfer Gold
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    Reverse merger? Following closely. One definitive conclusion I arrived at a long time ago is that newspapers are indeed fake news. The initial reporting, outside of the local newspaper, was a work of fiction at best.

    The other odd piece of speculation was about Fert. If the most recent reporting is to be believed, he in no way, shape, or form leaves this deal without a significant (possibly controlling) interest. Based on my post from yesterday, if I were trading on this, I would find the more recent reporting to be more accurate.
     
  13. NickPappageorgio

    NickPappageorgio ¿Quién vigila a los vigilantes?
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    Here's a NY Post article that provides more detail....

    Golden Nugget Casinos Owner Intrigued by Caesar's Merger

    The salient bit:

    "As it’s a reverse merger, Caesars would technically be the acquirer — yet the stock exchange would leave Fertitta the combined company’s largest shareholder. As such, Fertitta would become chairman and chief executive.

    Caesars shareholders, including private equity firms Apollo Global Management and TPG Global, would then have smaller stakes in a larger company."

    This would make sense, given Tillman's M.O. historically.
     
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  14. Wanker751

    Wanker751 Chairman
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    Thanks for the links to the Newspaper sites Nick. Really helps me bring it all together for everyone.

    Color me as a big Meh if this happens. I never stay and rarely play at GN. I don't think it will change much about GN except as part of TR (or TC or whatever it will be called) I'll probably get some calendar nights there I won't use.
     
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  15. Wanker751

    Wanker751 Chairman
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  16. Funkhouser

    Funkhouser Regional Gambling Specialist
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    Think about what this could do for the Landry's brand. You now have a bunch of new outlets for some of their restaurant chains. They could also market and use cross promotion in form of TR rewards to increase restaurant spend. Some of the crappier properties could be re-marketed under the Golden Nugget Brand.

    I see a divestiture of properties as part of this deal. Some of the smaller regional gaming companies would love to pickup one or two Vegas properties or get into smaller closed markets. Plus you get a seasoned CEO, who is an owner. Not some guy who ran a rental car company and put in place to steer the burning ship from Lurveman.

    To me this is an upside for Caesars.
     
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