Yahoo Finance Why Bally's (BALY) Stock Is Up Today
What Happened:
Shares of gaming, betting and entertainment company Bally's Corporation (NYSE:BALY) jumped 24.6% in the afternoon session after the company announced it has that it agreed to be acquired by Standard General L.P (the company's largest shareholder). According to the press release, Standard General will acquire shares of Bally's it doesn't already own for $18.25/share. This price represents a 71% premium over BALY's 30-day volume-weighted average price per share as of March 8, implying an enterprise value of $4.6 billion.
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What is the market telling us:
Bally's's shares are very volatile and over the last year have had 30 moves greater than 5%. But moves this big are very rare even for Bally's and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 5 months ago, when the stock gained 27.1% after the company announced that hedge fund Standard General proposed acquiring all outstanding shares it doesn't already own for $15 each, representing a 41% premium to the closing price on March 8, 2024. Standard General is Bally's largest stockholder, with a 23% ownership. If it succeeds, Standard General plans to allow stockholders to roll over their shares into the equity of the post-closing company. The proposed transaction is subject to approval by Bally's Board of Directors.
Bally's is up 25.7% since the beginning of the year, and at $16.90 per share, has set a new 52-week high. Investors who bought $1,000 worth of Bally's's shares 5 years ago would now be looking at an investment worth $614.10.
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