Merger rumblings percolate after investor suggests Penn sell casinos

Merger rumblings percolate after investor suggests Penn sell casinos

Article brief provided by The Nevada Independent
  • Howard Stutz, The Nevada Independent
June 20, 2024 4:07 PM
  • Howard Stutz, The Nevada Independent

A Los Angeles-based investment firm set off a speculation firestorm when it suggested Penn Entertainment sell all or some of its 43 casinos in 20 states.

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Penn, which operates M Resort in Henderson and two rural Nevada casinos, saw its stock price jump 20 percent after a May 31 letter to the company’s chairman from Donerail Group was released on Business Wire. The missive heated the rumor mill after managing partner Will Wyatt wrote that “value could be realized” if the company was put up for sale.

Wyatt complained the company invested $4 billion in online gaming and sports betting efforts in the last four years with little return. He suggested casino sales would help rebuild shareholder value.