Entertanment

Caesars Entertainment jumps after announcing Mark Frissora will step down as CEO

Mark Frissora, CEO and chairman of Hertz

Caesars Entertainment CEO Mark Frissora is stepping down after 3 years in the role, the company announced on Thursday.

He will remain in the role until February 8, 2019. The company did not announce a replacement.

Frissora was appointed in February 2015 by private equity firms Apollo Global Management and TPG Capital. Prior to working at Caesars, Frissora served as CEO of car rental company Hertz and auto parts manufacturer Tenneco.

Caesars also released its third-quarter earnings report on Thursday. The company reported earnings of 14 cents per share, while Wall Street had expected no earnings for the quarter, according to Refinitiv. However, Caesars slightly missed revenue expectations, reporting $2.19 billion in revenue compared to the $2.21 billion analysts expected, according to Refinitiv.

Earlier this month, it was reported that Golden Nugget Casinos owner Tilman Fertitta wanted to merge with Caesars Entertainment in a deal that would value Caesars at $13 per share. The reverse merger, with Caesars as the acquirer, would exchange stock in a private company owned by Fertitta for shares in Caesars.

In its earnings release, Caesars revealed that it rejected the proposed deal from Fertitta. The board “determined that it is not consistent with the Company’s plans to create and enhance shareholder value over the long term.”

Under Frissora, Caesars shares fell more than 20 percent. The casino giant emerged from bankruptcy last year after a restructuring process that began shortly before Frissora became CEO and lasted more than two years.

Shares of Caesars jumped 9 percent in after-hours trading following the announcement. The stocked closed up 3 percent at $8.85 per share, and is down 30 percent this year.

[“source=cnbc”]