Penn Entertainment Sees Stock Rise Amid Potential Flutter Interest

09.07.2024

Penn Entertainment’s stock rose by 5% following reports from TheDeal.com that Flutter Entertainment is considering an acquisition of Penn’s interactive assets.

Varied Market Reactions

This news also comes on the heels of a recent report by Reuters that Boyd Gaming, which already holds a 5% stake in Flutter and collaborates on retail and digital sports betting via Flutter’s FanDuel in the U.S., had made a takeover approach for Penn.

While Penn’s shares experienced a notable uplift, the reaction from Flutter and Boyd Gaming was more subdued, with minimal changes in their stock prices.

This contrast in market behavior indicates a cautious or “wait-and-see” approach from investors of Flutter and Boyd, in contrast to the more optimistic response from Penn’s investors.

Background and Speculation

The timing of these discussions is critical as Boyd Gaming is expected to report its second-quarter results on July 25. These results will likely provide further insights into the company’s financial health and might impact ongoing negotiations or discussions related to Penn Entertainment.

The interest from companies like Flutter and activism from stakeholders like Donerail Group suggest that Penn could attract double its current trading price in a sale.