Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Boyd Gaming eyes $9 Billion acquisition of Penn Entertainment

Source Investing

Investing.com - Boyd Gaming (NYSE:BYD), a renowned casino operator in the US, has expressed interest in acquiring its counterpart, Penn Entertainment.

The acquisition, valued at over $9 billion, including debt, could mark the most significant merger in the American gambling industry since Eldorado Resorts (NASDAQ:ERI)' $17.3 billion purchase of Caesars (NASDAQ:CZR) Entertainment in 2020.

However, the potential merger comes with its share of challenges. Boyd Gaming, being the smaller entity with a market value of $7.8 billion inclusive of debt, would need substantial financial backing to secure the deal.

Furthermore, the merger would require approval from multiple regulatory bodies and officials across several states where both companies operate.

Another hurdle for Boyd Gaming would be to secure the support of Walt Disney (NYSE:DIS), which maintains a partnership with Penn Entertainment through its sports network, ESPN.

Insiders have stated that there's no guarantee that Penn will enter into negotiations with Boyd, asking to remain anonymous due to the confidential nature of the matter.

Penn Entertainment, which operates 43 casinos and racetracks across 20 U.S. states, also provides online sports betting and online casino gambling in various locations. In 2021, Penn entered a $1.5 billion licensing agreement with Disney that permits the use of ESPN's brand in its online sportsbook. This deal has not only boosted Penn's CEO Jay Snowden's standing but also granted ESPN rights worth around $500 million to purchase Penn stock.

Despite the early success of the ESPN deal, Penn has faced criticism from activist investors like Donerail Group. The group has questioned Penn's substantial investments in its digital business without strong return prospects, urging the company to consider a sale.

Boyd Gaming, headquartered in Las Vegas, operates 28 gaming entertainment properties across 10 US states, manages a tribal casino in northern California, and runs an online casino gaming business. It also holds a 5% stake in sports-betting operator FanDuel Group.

In addition to Disney's approval, the potential merger between Boyd and Penn would require consent from various stakeholders, including gaming regulators in several states and landlords like Gaming&Leisure Properties. Given that Boyd's casino operations overlap with Penn in some states, Boyd might also be compelled to divest some operations in those locations.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Gold Price Forecast: XAU/USD recovers some lost ground above $2,050, US ADP report eyed Gold price (XAU/USD) bounces off the multi-day lows near $2030 per ounce and hovers around $2,042 during the early Asian session on Thursday.

Author FXStreet

Jan 04, 2024

Gold price (XAU/USD) bounces off the multi-day lows near $2030 per ounce and hovers around $2,042 during the early Asian session on Thursday.

Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.

Author FXStreet

Oct 06, Tue

Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.

WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recovery West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.

Author FXStreet

Oct 07, Wed

West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.

Gold falls to a two-month low as real yields bite — can $4,000 hold?Gold hit a two-month low on 7 October, with spot touching roughly $4,090 and COMEX December futures closing at $4,140.70, even as the New York Fed's one-year inflation expectation rose to 3.9% — its highest since May 2023. The paradox resolves through real yields: the 30-year Treasury yield reached 5.732% intraday, its highest since 2002. Here are the levels, the institutional split, and the scenarios into tonight's jobless claims and 30-year auction.

Author Irene Q.

Yesterday 07: 32

Gold hit a two-month low on 7 October, with spot touching roughly $4,090 and COMEX December futures closing at $4,140.70, even as the New York Fed's one-year inflation expectation rose to 3.9% — its highest since May 2023. The paradox resolves through real yields: the 30-year Treasury yield reached 5.732% intraday, its highest since 2002. Here are the levels, the institutional split, and the scenarios into tonight's jobless claims and 30-year auction.

【Daily Brief】Gold rebounds 1% off a two-month low, Nasdaq drops 1.25% and yields ease — the storm premium keeps WTI near $91 Gold trades at $4,174 after rebounding from Wednesday's $4,090 two-month low, the Nasdaq fell 1.25% while the Dow edged higher, and the 10-year Treasury eased to 5.23% from the week's highs. Hurricane Isaias keeps about 25% of Gulf output shut in with WTI near $91, and bitcoin holds below $82,000. The next scheduled tests are the EIA report on 15 October and the FOMC on 27-28 October.

Author Irene Q.

1 hour ago

Gold trades at $4,174 after rebounding from Wednesday's $4,090 two-month low, the Nasdaq fell 1.25% while the Dow edged higher, and the 10-year Treasury eased to 5.23% from the week's highs. Hurricane Isaias keeps about 25% of Gulf output shut in with WTI near $91, and bitcoin holds below $82,000. The next scheduled tests are the EIA report on 15 October and the FOMC on 27-28 October.

Popular Symbols