In a major shakeup in the casino industry, Bally’s Corporation, one of the largest casino operators in the United States, has announced that it will be acquired by hedge fund Standard General in a deal worth $4.6 billion. The acquisition, which is expected to close in the fourth quarter of this year, will see Standard General take control of Bally’s portfolio of casinos and online gaming operations, including its flagship property in Atlantic City.
The announcement comes as the casino industry continues to navigate the challenges posed by the COVID-19 pandemic, which has severely impacted revenues and forced many operators to make difficult decisions about their future. Bally’s, like many other casino operators, has been hit hard by the pandemic, with revenue plummeting as a result of widespread closures and operational restrictions.
Standard General, a New York-based hedge fund with a focus on media and consumer businesses, has been eyeing the casino industry for some time and sees Bally’s as a valuable addition to its portfolio. The fund, which already owns a significant stake in Bally’s, believes that the acquisition will help diversify its holdings and provide a strong long-term investment opportunity.
Under the terms of the deal, Standard General will pay $70 per share for Bally’s, representing a premium of more than 20% over the company’s closing price on Thursday. The acquisition is subject to regulatory approval and is expected to be completed by the end of the year.
Bally’s, which was founded in 1976 and has grown to become one of the leading casino operators in the country, currently owns and operates 18 casinos in 11 states, as well as online gaming platforms in several states. The company is known for its diverse portfolio of properties, which range from large-scale resorts to smaller, regional casinos.
In a statement announcing the acquisition, Bally’s CEO George Papanier expressed optimism about the deal, saying that it would provide the company with the financial resources and strategic support needed to weather the challenges facing the industry. Papanier also emphasized the opportunities for growth and expansion that the partnership with Standard General would bring, including investments in new markets and technologies.
The news of the acquisition has been met with a mix of excitement and caution in the industry, with some analysts expressing concern about the potential impact of the deal on Bally’s operations and existing partnerships. However, many industry observers see the acquisition as a positive development for Bally’s and a sign of confidence in the future of the company.
Overall, the acquisition of Bally’s by Standard General represents a significant milestone in the evolution of the casino industry, and one that is likely to have a lasting impact on the competitive landscape. As the industry continues to adapt to the challenges posed by the pandemic and other economic factors, the deal is seen as a bold move that could ultimately reshape the future of one of the country’s most prominent casino operators.