Bally’s Remains Confident about Future of Star Entertainment

Bally’s Corp’s play for Star Entertainment has been a well-weighted decision, argues the company’s boss, Robeson Reeves, who took the opportunity to comment on the recent investment in the operator, with the company coughing up $129 million in April to prop up the cash-strapped hospitality giant.

Bally’s is Optimistic about Star Entertainment’s Fortunes Despite Difficulties

Moving forward, Reeves is optimistic that Star Entertainment’s put the worst behind, with more skillful financial navigation necessary, granted, but the company’s overall prospects now looking much better, especially since cash has been found.

Bally’s Corp initially sought to pour $194 million into the company and acquire a controlling stake, but this has since been reduced through negotiation to a 38% stake in exchange for a smaller capital injection.

Reeves said that these decisions tracked Bally’s overall strategy for Star, and added:

“The opportunity to take a significant equity stake in Star and influence its future is consistent with Bally’s historical operating strategy, and we are confident and optimistic that, similar to past situations, we can deploy our disciplined operating and financial practices to strengthen Star and create new value for Bally’s shareholders.”

Robeson Reeves, Bally’s Corp

The transaction is treated as an equity investment and follows strong financial results for Bally’s, which has been able to allocate the money needed to gain a firm foothold with the company.

Bally’s is not just investing and hoping for the best. The company already has a well-established track record when it comes to bailing out companies and then leveraging its own experience to ensure that they are not just coasting but thriving.

Despite this positive development, Star still has some immediate and pressing matters to solve, including financial results in steep decline.