The acquisition, valued at over $9 billion, including debt, could mark the most significant merger in the American gambling industry since Eldorado Resorts (NASDAQ:
Furthermore, the merger would require approval from multiple regulatory bodies and officials across several states where both companies operate.Insiders have stated that there's no guarantee that Penn will enter into negotiations with Boyd, asking to remain anonymous due to the confidential nature of the matter.
Despite the early success of the ESPN deal, Penn has faced criticism from activist investors like Donerail Group. The group has questioned Penn's substantial investments in its digital business without strong return prospects, urging the company to consider a sale. In addition to Disney's approval, the potential merger between Boyd and Penn would require consent from various stakeholders, including gaming regulators in several states and landlords like Gaming & Leisure Properties. Given that Boyd's casino operations overlap with Penn in some states, Boyd might also be compelled to divest some operations in those locations.