Boyd Gaming makes acquisition approach to Penn Entertainment, sources say

Boyd Gaming makes acquisition approach to Penn Entertainment, sources say

Article brief provided by Reuters
  • Milana Vinn and Anirban Sen, Reuters
June 20, 2024 4:35 PM
  • Milana Vinn and Anirban Sen, Reuters

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.

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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.