Eldorado has reportedly embarked on a cost-cutting quest before making an official bid to combine with Caesars’ casino empire
Caesars Entertainment Corp might be pressured to mass layoffs, including parting ways with members of its executive suite, as Eldorado Resorts is exploring ways to reduce its larger rival’s costs by at least $500 million before making an official offer to buy it, The New York Post reported Tuesday.
Eldorado and Caesars confirmed that they were in early merger talks back in March.
Little has been disclosed on the progress of those talks since then.
It has only become known that Caesars has provided Eldorado with access to its financial data so that the latter can conduct due diligence.
A source familiar with the developments surrounding a potential mega-deal told The Post that Eldorado’s CEO, Tom Reeg, has been looking for ways to slash Caesars’ expenses by at least half a billion before moving forward with combining his business with that of the Las Vegas casino powerhouse.