Boyd Gaming has reportedly revealed an interest in acquiring fellow US gaming company Penn Entertainment.
Sources told Reuters that there is “no certainty” of Penn engaging with Boyd.
Any acquisition, the report said, would face several hurdles including regulatory and financial; regulators in the several US states where the companies operate would have a say in how a deal would affect the landscape in the individual markets.
What's more, Penn has ties to Disney through its €1.5bn deal with ESPN to rebrand its Barstool Sports brand to ESPN Bet.
Penn’s current market value is over US$9bn, but its future in M&A circles has been under the spotlight after recent criticism from an activist investor.
At the start of June, the Donerail Group hit out at what it believes are “continued and significant strategic failures” by the company.
Penn has “not been able to demonstrate the management expertise necessary to build a business that could become a formidable competitor in the online sports betting oligopoly,” the Donerail Group said in an open letter.
