Bally’s (NYSE: BALY.T) considered waiting for Star Entertainment Group to enter administration but decided against it, opting for a $188 million takeover bid instead. This decision stemmed from concerns that rescuing the company under government control would be too difficult.
Bally’s Chairman, Soo Kim, told Reuters that the company, in partnership with Australian pub baron Bruce Mathieson, made the offer when it saw Star selling assets, including its Sydney conference and plans to sell the Star Brisbane casino resort.
“We thought about waiting for voluntary administration but we thought, given there was a fire sale of assets, there might not be anything left if administration was to come,” Kim said.
Kim, also the founder of Standard General, which is Bally’s majority owner, confirmed that the bid was accepted on April 6, after Star ran out of financing options.
Other Potential Bidders Contemplated Waiting for Star’s Collapse
In early 2025, rumors circulated that other bidders were considering waiting for Star to enter government hands, but Bally’s acted first. Bally’s bid allows Star to remain intact without selling assets, with about a third of the purchase price already provided.
Kim remarked, “This came together quickly this year but we had been looking at it for well over a year. When we saw the company start to sell their proverbial furniture, burn the furniture for firewood we decided to move.”
Bally’s Maintains its Reputation as an Acquisition and Turnaround Specialist
Bally’s is living up to its reputation as an acquisition and turnaround specialist. The company has grown through acquisitions and is known for turning around underperforming assets.
However, despite its success, Bally’s faces potential challenges in Australia due to regulatory hurdles, and analysts suggest more capital may be needed to ensure Star’s future viability.
