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New King of Las Vega$

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 24 June 2019

⏱️ 21 minutes

🧾️ Download transcript

Summary

Eldorado buys Caesars Entertainment to create the largest owner & operator of casinos in the U.S. Dan Kline analyzes the hidden value in the deal and why he believes it will pay off down the line. Plus, we discuss the current state of the burger industry and the “disappointing” weekend at the box office for Toy Story 4.

Thanks Netsuite. Get the FREE guide, “7 Key Strategies to Grow your Profits” at www.NetSuite.com/Fool.

Transcript

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0:00.0

This episode of Market Foolery is brought to you by NetSuite, the business

0:05.9

in an easy-to-use cloud platform.

0:08.4

You can download their free guide entitled, The Seven Key Strategies to Grow Your Prof profits. You can download it today at netsuite.com

0:16.3

slash fool.

0:19.2

It's Monday June 24th. Welcome to Market Foolery.

0:22.2

I'm Chris Hill joining me in studio today. Up from Florida, it's

0:26.2

Dan Klein. Good to see you. Oh, nice to see you. You're all tan. I'm always tan. It's always summer in Florida.

0:34.0

That's true, that's true, and my people don't, you know, we're pale, so we don't do that.

0:39.2

We've got entertainment news, we're going to talk about the current state of the burger industry. We are going to start with the deal of the day because once again, Merger Monday has lived up to its title. This time in the casino industry, Eldorado is acquiring Caesar's Entertainment.

0:56.4

This is, maybe this shouldn't be curious.

0:58.7

It's a little curious just from the standpoint of this is the, from a market cap standpoint, this is the smaller company acquiring the larger company, certainly the better known company in Caesars.

1:10.0

And I think the people at El Dorado recognize that because they've immediately come out and said that the resulting casino company will be branded Caesars.

1:20.0

Yeah, I mean El Dorado, I knew them as a furniture chain.

1:23.2

I'd never even heard of them as a casino company, because their casino properties are in offbeat

1:28.2

places for the most part.

1:30.0

And it marries really well with Caesars.

1:32.1

So Caesars has been under fire for under performance.

1:34.8

There's been a lot of pressure to do something

1:36.5

to change management.

1:38.0

And this is actually kind of the perfect deal

1:40.0

because it gives Caesars a presence in places like Florida.

1:44.0

So I live down the street, about an hour,

...

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