{"id":212175,"date":"2022-05-05T09:17:24","date_gmt":"2022-05-05T16:17:24","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=212175"},"modified":"2022-05-05T14:03:55","modified_gmt":"2022-05-05T21:03:55","slug":"ballys-stock-falls-after-company-rejects-takeover-offer","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/ballys-stock-falls-after-company-rejects-takeover-offer\/","title":{"rendered":"Bally\u2019s Rejects Standard General Takeover Bid, Considers Buying $500M in Stock"},"content":{"rendered":"

Shares of Bally\u2019s (NYSE:BALY) are trading slightly lower Thursday after the regional casino operator rejected a $38 per share takeover offer from hedge fund Standard General — its largest investor.<\/p>\n

\"Bally's\"
Bally’s on the Atlantic City Boardwalk, seen above. The casino company rejected Standard General’s takeover offer. (Image: Press of Atlantic City<\/em>)<\/figcaption><\/figure>\n

Launched in January, the proposal valued the Rhode Island-based gaming company at about $2 billion<\/a>. At the time of the offer, some analysts speculated Standard General, or perhaps another suitor, would come forth with a higher offer for Bally\u2019s. Additionally, there were concerns Gamesys executives that joined Bally\u2019s when the latter acquired the former in 2021 would balk at the offer price. That’s because it was lower than the price at which they received equity in the gaming company.<\/p>\n

While Bally\u2019s offered cash for Gamesys, there was an option for the latter to receive shares<\/a> in the buyer. When the deal closed, Bally\u2019s stock was trading at over $50. It subsequently tumbled and never hit the $38 Standard General offered, indicating Gamesys executives were likely reluctant to sell at deeply discounted levels.<\/p>\n

Bally\u2019s stock is down 21% year-to-date and resides below $30 today. But leadership believes compelling opportunities are afoot.<\/p>\n

The company has very substantial opportunities before it, including the integration of the Gamesys acquisition, the build-out of Bally’s North American interactive business and the continued strategic expansion of our land-based footprint in the U.S. With these opportunities in front of us, we have great confidence in the future as we move forward,\u201d said CEO Lee Fenton in a statement.<\/p><\/blockquote>\n

Standard General founder Soo Kim said he\u2019s disappointed in the outcome but adds his investment firm intends \u201cto remain a supportive, long-term investor in the company.\u201d<\/p>\n

Bally\u2019s Buyback<\/h2>\n

Perhaps sensing an opportunity to buy some of its battered shares at a discount, Bally\u2019s announced a tender offer for $300 million to $500 million of its stock.<\/p>\n

\u201cBally’s simultaneously announced that its board of directors determined that Bally’s should pursue initiating a cash tender offer for its shares. It is anticipated that the tender offer will involve $300 million to $500 million, and will be structured in a Dutch auction format,\u201d the company said in the statement.<\/p>\n

\n

The Dutch auction methodology is different than repurchasing shares on the open market. In a Dutch auction, the price of what\u2019s being sold is determined by accounting for all bids to arrive at the highest price. Other gaming companies successfully reduced shares outstanding tallies via Dutch auctions<\/a> in recent months.<\/p>\n<\/div>\n

\u201cWe view this as a positive outcome for the shares,\u201d said Stifel analyst Jeffrey Stantial in a note to clients.<\/p>\n

He rates Bally\u2019s stock a \u201cbuy,\u201d with a $56 price target.<\/p>\n

What\u2019s Next for Bally\u2019s<\/h2>\n

While the pace of consolidation and other transactions remains brisk in the gaming industry, it\u2019s not clear if another suitor will emerge for Ballly\u2019s. It’s also uncertain what the necessary price is to compel management to accept a takeover offer.<\/p>\n

\n

For now, the company could opt to focus on its North American interactive business and stemming losses in that business. The operator reported first-quarter results today with earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR), and revenue missing Wall Street forecasts.<\/p>\n<\/div>\n

Bally\u2019s North America interactive operation lost $19 million in the March quarter, more than double the loss in the prior quarter.<\/p>\n

\u201cNonetheless, $19M marks a large sequential increase from the $9M invested in Q4, and seems to suggest management’s prior $60M guidance for FY22 may need to drift higher,\u201d adds Stifel\u2019s Stantial.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Bally\u2019s (NYSE:BALY) are trading slightly lower Thursday after the regional casino operator rejected a $38 per share takeover offer from hedge fund Standard General — its largest investor. Launched in January, the proposal valued the Rhode Island-based gaming company at about $2 billion. At the time of the offer, some analysts speculated Standard […]<\/p>\n","protected":false},"author":46,"featured_media":212176,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093],"tags":[],"acf":[],"yoast_head":"\nBally's Stock Falls After Company Rejects Takeover Offer<\/title>\n<meta name=\"description\" content=\"Bally's rejects Standard General takeover offer, but announces tender offer for some shares.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/ballys-stock-falls-after-company-rejects-takeover-offer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bally's Stock Falls After Company Rejects Takeover Offer\" \/>\n<meta property=\"og:description\" content=\"Bally's rejects Standard General takeover offer, but announces tender offer for some shares.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/ballys-stock-falls-after-company-rejects-takeover-offer\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-05T16:17:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-05T21:03:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/Bally.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"873\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-stock-falls-after-company-rejects-takeover-offer\/\",\"url\":\"https:\/\/www.casino.org\/news\/ballys-stock-falls-after-company-rejects-takeover-offer\/\",\"name\":\"Bally's Stock Falls After Company Rejects Takeover Offer\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-stock-falls-after-company-rejects-takeover-offer\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-stock-falls-after-company-rejects-takeover-offer\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/Bally.jpg\",\"datePublished\":\"2022-05-05T16:17:24+00:00\",\"dateModified\":\"2022-05-05T21:03:55+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Bally's rejects Standard General takeover offer, but announces tender offer for some shares.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-stock-falls-after-company-rejects-takeover-offer\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/ballys-stock-falls-after-company-rejects-takeover-offer\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-stock-falls-after-company-rejects-takeover-offer\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/Bally.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/Bally.jpg\",\"width\":1200,\"height\":873,\"caption\":\"Bally's on the Atlantic City Boardwalk. 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