Billionaire businessman Tilman Fertitta is reportedly negotiating a potential acquisition of casino operator Caesars Entertainment in a deal that could reach roughly $7 billion, surpassing a competing proposal from investor Carl Icahn. The discussions place one of the largest U.S. gambling companies at the center of a possible takeover contest.

According to reports, Fertitta’s holding company, Fertitta Entertainment, has been holding exclusive talks with Caesars regarding a purchase price of approximately $34 per share. The figure would exceed an all-cash offer of about $33 per share submitted through Icahn Enterprises, the investment vehicle controlled by Icahn.

Despite the negotiations, the outcome remains uncertain. The Wall Street Journal reported that “an announcement between the two sides isn’t imminent, and it is possible the talks won’t result in any deal.” Caesars has also not formally rejected Icahn Enterprises’ proposal.

News of the discussions triggered a market reaction. Caesars shares climbed nearly 12% Wednesday to $29.07 after the talks became public. The price jump followed a closing value of $26.01 the previous day, which had valued the company at more than $5 billion.

Rival Offers Put Caesars at Center of Takeover Interest

Speculation about a potential sale began building earlier this year. Reports in late February suggested that Fertitta and a group that included Caesars management were exploring acquisition possibilities. The initial report caused the company’s stock to rise about 19% in a single day.

Fertitta’s reported offer represents a premium compared with recent share prices and signals growing interest in Caesars despite a difficult year for its stock. Prior to the takeover rumors, shares had fallen roughly 40% over the previous 12 months. Over a five-year period, the decline exceeded 70%.

Icahn has long been connected to Caesars. He first purchased a stake in the company in 2019 and advocated for strategic changes that eventually led to Eldorado Resorts acquiring Caesars in 2020 for $17.3 billion. Tom Reeg, who previously led Eldorado, became chief executive of the combined company.

More recently, Icahn returned as an investor and expanded his influence. In March 2025, Caesars appointed Icahn Enterprises chief financial officer Ted Papapostolou and general counsel Jesse Lynn to the company’s board.

Icahn has argued that the company’s online betting unit holds greater value than markets currently recognize. He has described the digital segment as “underappreciated” and suggested it could be worth between $4.6 billion and $7.6 billion if separated into a standalone business.

Debt, Property Leases, and Structure Complicate Any Deal

Any potential buyer would inherit a complex financial structure. Caesars carried about $11 billion in net debt at the end of 2025, along with property lease commitments exceeding $1.2 billion annually.

These obligations push the company’s enterprise value above $30 billion, even though its stock market valuation is far lower. The financial structure dates back to the company’s history of leveraged transactions and restructuring.

Caesars entered bankruptcy following a buyout led by Apollo Global Management and TPG in 2008. Its operating unit later emerged from bankruptcy in 2017, and the company spun off much of its real estate into VICI Properties. Caesars now leases those properties from the real estate investment trust.

The structure has raised questions about whether VICI would need to approve certain changes if the company were broken apart. However, reports indicate that proposals from both Fertitta and Icahn are designed in a way that could allow parts of the business to be separated without the landlord’s consent.

VICI shares fell about 3% after news of the negotiations became public.

Fertitta’s Expanding Gaming and Hospitality Portfolio

If a deal proceeds, Caesars would significantly expand Fertitta’s presence in the hospitality and gaming industry. His company already operates the Golden Nugget casino chain and owns restaurant giant Landry’s. Fertitta also owns the NBA’s Houston Rockets.

He additionally holds a major stake in Wynn Resorts, currently about 12.3%, making him the company’s largest individual shareholder. Analysts have suggested that stake could potentially help facilitate a Caesars acquisition, although gaming regulators may examine overlapping ownership between competing casino operators.

Fertitta stepped down as chief executive of Fertitta Entertainment in 2025 after being confirmed by the U.S. Senate as ambassador to Italy and San Marino under President Donald Trump. While he remains the company’s owner, the diplomatic role means he cannot participate in daily management or negotiations.

Caesars itself operates more than 50 resorts under brands that include Caesars, Harrah’s, Eldorado, and Circus Circus. The company reported revenue of $11.5 billion in 2025, compared with $11.2 billion the previous year. Its digital division turned profitable during that period, generating $1.41 billion in annual revenue and adjusted EBITDA of $236 million, up from $117 million in 2024. Even with those gains, Caesars posted a net loss of $502 million in 2025.

For now, negotiations continue without a confirmed agreement. With two billionaires pursuing competing proposals and a complicated balance sheet involved, the future ownership of Caesars remains uncertain.