Reuters: Sources say Eldorado Resorts clinches $18 billion cash and stock deal for Caesars

U.S. casino operator Eldorado Resorts Inc of Reno has agreed to merge with Caesars Entertainment Corp in a cash and stock deal that values its peer at about $18 billion including debt, people familiar with the matter told Reuters on Sunday.

The agreement comes three months after Reuters reported that Caesars had agreed to give Eldorado access to its books under pressure from billionaire investor Carl Icahn, who earlier this year was awarded seats on Caesars’ board.

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Earlier this week, Eldorado Resorts Inc. announced they were selling three of its regional properties in Missouri and West Virginia, a move some analysts believe is a sign the casino company was gearing up for an acquisition.

Last Monday morning the Reno-based company announced the sale of the properties for $385 million. That sale left Eldorado with 23 properties in 12 states.

Eldorado Resorts has had a very active year and closed on their deal to buy Tropicana Entertainment in 2018. That made them the parent company of MontBleu Resort Casino & Spa in Stateline. If the deal to buy Caesars Entertainment goes through, Eldorado would own three of the five casinos (Harrah's, Harveys and MontBleu) on the South Shore. It is unknown at this time what their plans are for Lake Tahoe.

Donald Louis Carano started his casino business in 1973 when he opened the Eldorado Hotel Casino in Reno, Nevada. The family still owns 26 percent of the company.