Bally’s Forms Special Committee to Evaluate Preliminary, Non-Binding Acquisition Proposal by Standard General

Rhea-AI Summary

Bally's Corporation (BALY) announces the formation of a special committee to evaluate a proposal by Standard General to acquire all outstanding shares for $15.00 per share. The proposal is non-binding, and various strategic alternatives are being considered.

Financial Analyst

The formation of a special committee by Bally's Corporation to evaluate a buyout proposal is a significant event that warrants close scrutiny from a financial perspective. The offer price of $15.00 per share by Standard General represents a concrete valuation of the company, which could potentially affect the stock's trading behavior. Investors will be interested in the premium this offer represents over the current trading price. If the premium is substantial, it could indicate that Standard General sees unrecognized value in Bally's assets or future earning potential.

It's also crucial to consider the financial health of Bally's and its market position. If Bally's has been underperforming or has untapped potential, a buyout could provide the necessary capital and strategic direction to unlock value. However, if the company is already performing well, stakeholders might view the offer as undervaluing the company's true worth. Comparing the offer to similar transactions in the industry could provide additional context to evaluate its fairness.

Market Research Analyst

From a market dynamics standpoint, the proposal by Standard General could lead to significant changes in the competitive landscape. If the acquisition is successful, there could be a consolidation effect that might alter market shares and competitive strategies within the industry. Analyzing past acquisitions by Standard General could shed light on their strategic approach and potential operational changes they might implement at Bally's.

Another aspect to consider is the reaction of Bally's competitors to the news. They might see this as an opportunity to strengthen their own market positions while Bally's is focused on the transaction. Additionally, the response of customers and suppliers to the potential change in ownership could influence Bally's business operations during and after the evaluation process.

Legal Expert

The legal implications of such a transaction are multi-faceted. The role of the special committee is to ensure that the interests of all shareholders are represented, especially those who are not affiliated with Standard General. They must act with due diligence to assess not only the financial aspects of the offer but also the legal ramifications, including regulatory approvals and potential antitrust considerations.

Furthermore, the disclosure of the proposal letter as an exhibit to Standard General’s Schedule 13D/A filing is a regulatory requirement that provides transparency to the market. It's essential to monitor the Securities and Exchange Commission filings for any amendments or additional information that could affect the proposed acquisition's legal and regulatory pathway.

PROVIDENCE, R.I.--(BUSINESS WIRE)-- The Board of Directors of Bally’s Corporation (NYSE: BALY) today announced that it has formed a special committee of independent and disinterested directors that is authorized, among other things, to evaluate the preliminary, non-binding proposal, dated March 11, 2024, by Standard General to acquire all of the outstanding shares of Bally’s that it does not already own for $15.00 in cash per share, as well as any potential strategic alternatives to the proposal.

A copy of the proposal letter from Standard General is available as an exhibit to Standard General’s statement of beneficial ownership on Schedule 13D/A as publicly filed with the Securities and Exchange Commission.

There can be no assurance that any definitive offer will be made or accepted, that any agreement will be executed or that any transaction will be consummated.

About Bally’s Corporation

Bally’s Corporation is a global casino-entertainment company with a growing omni-channel presence of Online Sports Betting and iGaming offerings. It currently owns and manages 16 casinos across 10 states, a horse racetrack in Colorado and has access to OSB licenses in 18 states. It also owns Bally’s International Interactive, formally Gamesys Group, a leading, global, online gaming operator, Bally Bet, a first-in-class sports betting platform, and Bally Casino, a growing iCasino platform.

With 10,500 employees, the Company’s casino operations include approximately 15,000 slot machines, 600 table games and 5,300 hotel rooms. Upon completing the construction of a permanent casino facility in Chicago, IL and a land-based casino near Nittany Mall in State College, PA, Bally’s will own and manage 17 casinos across 11 states. Its shares trade on the New York Stock Exchange under the ticker symbol BALY.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “plan” and “will” or, in each case, their negative, or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by Bally’s in this press release, its reports filed with the Securities and Exchange Commission (“SEC”) and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for Bally’s to predict or identify all such events or how they may affect it. Bally’s has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to those included in Bally’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by Bally’s with the SEC. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240312138342/en/

Media

Diane Spiers

(609) 377-4706

dspiers@ballys.com



Investor

Marcus Glover

Chief Financial Officer

(401) 475-8564

IR@ballys.com



James Leahy, Joseph Jaffoni, Richard Land

JCIR

(212) 835-8500

baly@jcir.com

Source: Bally’s Corporation

What is the purpose of the special committee formed by Bally's Corporation?

The special committee of independent directors is evaluating a non-binding proposal by Standard General to acquire all outstanding shares of Bally's for $15.00 per share.

Who is Standard General in relation to the proposal mentioned in the press release?

Standard General is the entity that has made the preliminary, non-binding proposal to acquire all outstanding shares of Bally's Corporation for $15.00 per share.

What is the offer price per share mentioned in the proposal?

The offer price per share in the proposal by Standard General is $15.00 in cash.

Are there any guarantees of a definitive offer being made or accepted?

There is no assurance provided in the press release that a definitive offer will be made or accepted, or that any transaction will be consummated.