The impending departure of Caesars Entertainment CEO Mark Frissora could be part of a planned merger between the company and fellow global gaming giant MGM Resorts.
According to the New York Post, MGM has hired investment bank Morgan Stanley and law firm Weil, Gotshal & Manges to look into the possibility, although no official offer has yet been tabled.
However, it is suggested that the departure of Frissora, who announced last week that he would step down from the top job on 8 February 2019, was engineered by activist hedge funds who own around 25% of Caesars and are keen to see the company join forces with MGM.
“Everyone knows that without a CEO, Caesars is in play,” the New York Post quoted one source as saying.
Such a merger would significantly reduce overhead costs for both parties, although how it would be viewed by regulators remains to be seen with the new super-power potentially controlling half the hotel rooms available in Las Vegas and Atlantic City.