Boyd Gaming expresses interest in acquiring Penn Entertainment
Penn would need to obtain regulatory approval in multiple states.
US.- Reuters has reported that Boyd Gaming has approached Penn Entertainment with a proposal to acquire the company. The company has a market value of over $9bn, including debt, although its official market capitalisation is currently $3bn).
Penn’s shares rose 8 per cent to $19.89 following the news on Thursday afternoon, while Boyd’s stock fell 3 per cent to $51.90. For Boyd to succeed in acquiring Penn, it would need to secure financial backing and obtain regulatory approval in multiple states where the two companies operate. Overlapping operations could require divestitures to satisfy regulatory requirements.
Boyd would also need to consider its relationship with Walt Disney as Disney’s ESPN network has a $1.5bn licensing agreement with Penn for the ESPN Bet brand.
Penn Entertainment operates 43 casinos and racetracks in 20 US states and offers online sports betting and casino gambling. The company has made investments in its digital presence. It purchased Canada’s Score Media and Gaming for $2.1bn in 2021.
Boyd Gaming, based in Las Vegas, operates 28 gaming properties in 10 US states, manages a tribal casino in northern California and has an online gaming business. The company also holds a 5 per cent stake in Flutter’s FanDuel Group.
