Stocks Tracker: M&A whispers and done deals see share prices spike
EGR analyses the share prices of key industry players in June, including Flutter, PENN Entertainment and Kambi
Flutter Entertainment
3 June closing: $189.14
28 June closing: $182.36
Peak June closing: $191.70
A first full month of its primary listing in New York for Flutter wasn’t perfect by any means, but a steady share price in June meant there were no major concerns to shout about. Having transferred its main listing to the US, leaving London behind – as has been the case for several businesses ditching the City for exchanges elsewhere – the operator will be hoping the deep well of US capital will provide a boost.
Operationally, FanDuel completed the acquisition of BeyondPlay at the start of the month, while the business was also named as the only gambling firm in TIME’s 100 Most Influential Companies 2024 list. Former Spotify head Mark Shaw was drafted in as the group’s new director of global payments strategy, too.
PENN Entertainment
3 June closing: $17.33
28 June closing: $19.36
Peak June closing: $20.04
PENN Entertainment started June with a share price jolt thanks to an open letter from activist investor the Donerail Group, published at the end of May, calling for change at the business in no uncertain terms.
And while the group’s M&A strategy (theScore, Barstool) was slammed, along with a lack of focus on the legacy land-based operations, CEO Jay Snowden also came under fire for his role in the digital push, which the Donerail Group said had “destroyed” shareholder value.
A shareholder push back against Snowden’s 2023 pay packet also cropped up during June, but murmurs of Boyd Gaming eyeing PENN as an acquisition target helped further inflate the firm’s stock. A June peak of a little of $20 was PENN’s highest share price since February.
Boyd Gaming
3 June closing: $53.94
28 June closing: $55.10
Peak June closing: $55.32
As PENN’s share price increased on the back of the report of Boyd’s potential interest, the would-be acquirer’s stock failed to reciprocate. As Reuters reported the interest on 20 June, Boyd’s stock fell from $53.75 to $53.68, before recovering in the back end of the month to close out at $55.10.
Reuters had claimed that Boyd is valued at around $7.8bn, while PENN would be worth closer to $9bn, including debt. Boyd, which still owns a 5% stake in FanDuel, has steered clear of getting involved in the dogfight of online sports betting following the fall of PASPA in 2018. Any potential acquisition of PENN Entertainment would also see a potential shift in the role of ESPN Bet in the market.
Kambi
3 June closing: SEK104.10
28 June closing: SEK105.80
Peak June closing: SEK105.80
A blow for Kambi’s stock towards the end of the month eventually saw the Stockholm-listed firm to bounce back and close out June with its highest share price of the past four weeks. News of MGM Resorts International acquiring Tipico’s US sportsbook tech via LeoVegas Group sent Kambi’s shares down from SEK102.40 to SEK94.05, before falling even further to SEK91.10 on 25 June.
Kambi is the current tech supplier for LeoVegas Group, but with plans to bring the operator onto the much-lauded Tipico US platform, the market reacted. However, Kambi’s stock rose in the last week of June, closing out at a monthly high of SEK105.80.
The brand also helped Jackpotjoy launch its first sports betting product in the UK ahead of Euro 2024, while Oddschecker data revealed the sportsbooks it powered in the 2023-24 Premier League season had the tightest pricing.
MGM Resorts International
3 June closing: $40.21
28 June closing: $44.44
Peak June closing: $44.44
So, while Kambi’s stock slid on the news of MGM’s latest M&A move, the Las Vegas-based firm didn’t see an equal reaction in the other direction. MGM’s share price ticked up slightly from the previous week’s close of $42 to end the day at $42.45 on 24 June. But, similarly to Kambi, the end of the month saw a strong rise for the casino giant, ending June at $44.44.
Other highlights throughout June included the penning of a live casino content deal with Playtech and also snapping up top casino streamer Brian Christopher on an exclusive ambassador deal. Outside of the US, the BetMGM UK brand spent June on a sponsorship spree, adding TNT presenter Laura Woods as an ambassador and netting three Premier League deals with Wolves, Spurs and Newcastle.