Shares of Bally's Corporation jumped 25% Thursday after the U.S. betting company announced plans to merge with hedge fund Standard General.Bally’s Corporation has announced plans to merge with Standard General’s affiliate Queen Casino & Entertainment Inc. , which owns four casino properties and has an ownership stake in Itralot SA, a global lottery management company.Thursday, with shareholders set to receive $18.25 per share, a 35% percent premium over Wednesday’s closing price.
This wasn't Standard General’s first attempt to acquire all the outstanding shares in Bally’s, with its first offer being rejected by the board in May 2022. In March, Standard General offered $15 per share for the regional casino company. Bally’s retained Macquarie Capital to help evaluate Standard General’s proposal.Standard General already had a relationship with Bally’s. In 2016, the hedge fund took an ownership stake in Twin River Worldwide Holdings, which would later become Bally's.
In 2021, Bally's acquired SportCaller, a free-to-play games provider. It also acquired the third-largest daily fantasy sports company, Monkey Knife Fight. That same year, it bought Bet.Works for $125 million and Gamesys Group for $2.7 billion.In a letter to employees, then-CEO Lee Fenton noted the unsustainability of the company’s high employment levels. “The pandemic boosted our business and we continued to hire at full pelt.