Eldorado Resorts takes on bigger rivals with $8.5 billion Caesars buy

The deal comes more than three months after Caesars agreed to give billionaire investor Carl Icahn three board seats to his representatives and a say on the selection of its next chief executive officer. Shares of Caesars, up 47% this year, rose 11.4% to $14.51 at mid-afternoon, while Eldorado's stock, which has increased 41.4% year to date, fell 13.2% to $44.45. Eldorado has made a series of acquisitions over the past few years including a $1.85 billion deal for Icahn-backed Tropicana Entertainment in 2018 and a $1.7 billion deal for Isle of Capri Casinos in 2017, strengthening its free cash flow and earnings per share.