U.S. casino operator Boyd Gaming has approached Penn Entertainment to express interest in acquiring its peer that has a market value of more than $9 billion, including debt, according to people familiar with the matter.
Penn’s shares jumped 8% on Thursday afternoon in New York to $19.89 after Reuters reported Boyd’s approach. Boyd’s stock fell 3% to $51.90.
A deal would be the biggest merger among U.S. gambling companies since Eldorado Resorts’ $17.3 billion acquisition of Caesars Entertainment in 2020.
It would be challenging since Boyd, the smaller company with a market value including debt of $7.8 billion, would need financial firepower to clinch a deal. The companies would also need the blessing of regulators and officials in several states where they both operate.
