Caesars Entertainment is being acquired for almost $6 billion by Fertitta, the company that owns Las Vegas’ Golden Nugget and chains like Rainforest Cafe and Morton’s.
Caesars became an iconic name after the opening of Caesar’s Palace on the Las Vegas Strip in 1966. However, its roots date back to the 1930s in Reno, Nevada.
Fertitta Entertainment will pay $5.7 billion and take on close to $12 billion in debt from Caesars, putting the total value of the deal at about $17.6 billion.
As part of the agreement, Caesars can seek competing bids through July 11.
Caesars investors will get $31 in cash for each share they own, a 49% premium over the share price before chatter about a possible tie-up between the two entertainment companies began in February.
Shares of Caesars Entertainment Inc., which are up 15% since merger rumors emerged, rose almost 2% before the opening bell Thursday.
The Associated Press contributed to this report.