Casino operator Boyd Gaming has reportedly contacted Penn Entertainment to express its interest in acquiring the company.
Following reports of the approach, Boyd stock fell 3% to $51.90 while Penn’s shares jumped 8% to $19.89.
There have been no indications as of yet as to how much the takeover bid would be, but Penn’s current market cap hovers around the $2.7 billion mark while estimates suggest that the company has an actual market value of around $9 billion once debt is included.
Boyd Gaming’s market cap sits at $5.09 billion while the company has a market value of around $7.8 billion including debt.
Should the deal go through, it would be the largest merger of US gambling companies since Eldorado Resorts acquired Caesars Entertainment in a $17.3 billion deal in 2020.
Any merger would need to be approved by regulators in several states as both companies have operations across the country.
Based in Las Vegas, Boyd has 28 gaming entertainment properties across 10 U.S. states. The company also runs a tribal casino in California and maintains a 5% state in Flutter’s FanDuel.
Meanwhile Penn operates 43 racetracks and casinos in 20 U.S. states. The company also offers online sports betting and online casino gambling through its deal with Disney that sees it operate the ESPN Bet brand.
Since Boyd’s casino operations will overlap with Penn’s in some states, there may be a need to divest some properties and operations to allow the deal to go ahead.
Neither Penn nor Boyd have commented on the reports as of yet.
An experienced iGaming commentator and analyst based in New York City – Jenny reports on regulation and gambling industry news and events.
Boyd Gaming Corporation, a leading casino operator in the United States, has recently received a takeover approach from Penn Entertainment. The news has sent shockwaves through the gambling industry, as the potential merger could create a major player in the market.
Boyd Gaming, which operates 29 casinos in 10 states, has been a key player in the industry for decades. The company has a strong presence in Las Vegas, Atlantic City, and other major gambling destinations. With a focus on customer service and innovation, Boyd Gaming has built a loyal customer base and a solid reputation in the industry.
On the other hand, Penn Entertainment is a relatively new player in the market, but has been rapidly expanding its presence in recent years. The company operates 41 properties in 19 states, including several high-profile casinos in Pennsylvania and other key markets. With a focus on technology and customer experience, Penn Entertainment has been able to attract a younger demographic and drive growth in a competitive market.
The potential merger between Boyd Gaming and Penn Entertainment could create a powerhouse in the industry, with a combined portfolio of over 70 properties across the country. This would give the new entity significant scale and resources to compete with other major players in the market, such as MGM Resorts and Caesars Entertainment.
However, the merger is not a done deal yet. Boyd Gaming’s board of directors will need to carefully consider the offer from Penn Entertainment and evaluate whether it is in the best interest of shareholders. There are also regulatory hurdles that the companies will need to navigate, as any merger of this size would likely face scrutiny from antitrust authorities.
Overall, the potential takeover approach from Penn Entertainment represents an exciting development in the gambling industry. If the merger goes through, it could reshape the landscape of the market and create a major player with significant influence and resources. Investors and industry observers will be closely watching to see how this story unfolds in the coming months.
