Invested a sum of $10 million in FanDuel, later selling the company for a staggering $1.76 billion after a period of seven years.
Boyd Gaming Bolsters Online Gambling Presence with $170m Pala Interactive Acquisition
In a strategic move, Boyd Gaming, the renowned casino operator, has purchased Pala Interactive for $170 million. This acquisition comes after the company regained full control over FanDuel for a price tag of $1.76 billion [1][3][4][5].
Back in 2018, Boyd Gaming had invested $10 million in FanDuel, and earlier this year, it sold its remaining 5% stake for nearly $2 billion [4][5]. According to Keith Smith, CEO of Boyd Gaming, this return is a "pretty fair one" for the shareholders [5].
The proceeds from the FanDuel deal will be primarily used to reduce overall debt, strengthening Boyd Gaming's financial position for future investments, property improvements, and shareholder returns [1][3][4][5]. This improved financial strength supports Boyd’s ongoing strategy of investing in its properties, pursuing new growth opportunities, and maintaining a strong balance sheet [1].
The acquisition of Pala Interactive is part of Boyd Gaming's strategy to serve a competitive product in markets where it currently operates in the online gambling segment. Pala Interactive is a digital and interactive gaming platform, and by acquiring it, Boyd is strengthening and growing its online presence and capabilities amidst evolving market dynamics, complementing its retail casino operations with enhanced online offerings [1] (though direct details on Pala Interactive’s role were not provided in the search results).
Boyd Gaming intends to use the money from the FanDuel deal for "higher-returning investments" in the future, but not necessarily for another transaction [1]. The proceeds from the FanDuel sale will be used by Boyd Gaming in the short term to reduce debt [1][3][4][5].
Notably, Boyd Gaming's second-quarter results recently surpassed estimates due to growth across its properties [6]. With these strategic acquisitions and a strong financial position, Boyd Gaming is poised for continued growth and success in the ever-evolving gambling industry.
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The acquisition of Pala Interactive, a digital and interactive gaming platform, by Boyd Gaming is intended to strengthen and expand their online presence and capabilities, complementing their retail casino operations with enhanced online offerings. This move is part of Boyd Gaming's strategy to serve a competitive product in markets where they currently operate in the online gambling segment.
