The article discusses the possibility of PENN Entertainment being acquired by Boyd Gaming or Flutter. Boyd Gaming has already approached PENN Entertainment with a potential acquisition bid, which complications due to Boyd being smaller than PENN. PENN is valued at around $9 billion, while Boyd stands at $7.8 billion. Flutter, the parent company of FanDuel, is also reportedly interested in PENN’s assets, particularly ESPN BET. This development could significantly impact the sports betting industry, which has seen considerable consolidation since the PASPA decision. The complexity of the deal is heightened by the involvement of various stakeholders, including Gaming and Leisure Properties, Inc. and Disney. Recent board appointments, such as former Disney executives to both PENN and Flutter, and a former Barclays banker to Boyd’s board, suggest imminent M&A activity. An activist investor has further fueled the M&A rumors by calling for PENN’s sale. The valuation of ESPN BET, a joint venture between PENN and ESPN, complicates the scenario. PENN is paying ESPN $1.5 billion over ten years for the partnership but faces high customer acquisition costs and expects significant EBITDA loss in 2024. PENN’s stock has shown volatility amid these developments.

Gaming and Leisure, Sports Betting, Private Equity and Venture Capital,United States, United Kingdom