Bally’s Corporation, the famous global gambling and entertainment conglomerate, has announced that the company is set to be acquired by its largest shareholder, Standard General, for $975 million. The New York-based hedge fund, which currently holds about 25% of Bally’s shares, proposed a buyout at $18.25 per share. This valuation marks a substantial increase over previous offers and reflects a 71% premium compared to the price before the initial buyout proposal in March.
The acquisition is pending approval from shareholders and regulatory bodies and is anticipated to be finalized in the first half of 2025. Soo Kim, chairman of Bally’s and founding partner of Standard General, expressed optimism about the future, stating: “What it says is that myself and some of the other large inside shareholders believe that the future is bright, and want to put our money where our mouth is.”
As part of the transaction, Bally’s will merge with Queen Casino & Entertainment, a majority-owned entity of Standard General, which currently operates four casinos across three states. This merger will expand the combined company’s portfolio to 19 casinos in 11 states, including three in Illinois, according to a company press release.
This deal follows a previous offer in March when Standard General bid $15 per share, valuing the company at approximately $648 million. The special committee formed by Bally’s board, advised by Macquarie Capital, evaluated this offer alongside other strategic alternatives before settling on the current $18.25 per share agreement.
Jaymin Patel, chairman of the special committee, highlighted the deal’s benefits, saying: “After a detailed consideration by the Special Committee, with the assistance of our outside financial and legal advisors, it was determined that the Cash Consideration from Standard General delivers a meaningful and immediate value to stockholders.”
A Crucial Moment
The acquisition comes at a pivotal time for Bally’s, which recently secured financing to proceed with its ambitious $1.7 billion casino project in Chicago. Despite the significant financial challenges that have seen the company’s stock prices fall, particularly after rejecting a $38 per share offer from Standard General in 2022, Bally’s managed to secure the necessary funds to continue its major developments, including the Chicago casino complex, according to Chicago Tribune.
The company’s Chicago project, which involves transforming the Freedom Center printing plant site into a state-of-the-art casino complex, is a major component of Bally’s expansion strategy. This project is backed by $940 million in funding from Gaming and Leisure Properties and includes plans for a 500-room hotel and a large gaming and entertainment venue.
Bally’s acquisition by Standard General is seen as a strategic enhancement, ensuring the company’s long-term growth and stability. Lance Vitanza, a senior analyst at TD Cowen, noted the likelihood of the deal’s successful closure, citing the solid relationships and track record of Standard General in managing casino properties effectively.
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