Truist Securities Predicts High M&A Activity in 2025

Truist Securities has expressed optimism about a potential rebounding in mergers and acquisitions within the gaming sector. This would notably end a fairly dry period of low M&A activity.

Truist Trusts the Favorable Conditions

At the Wicked Good 12th Annual GLLR Summit in Boston, Truist Securities highlighted a number of favorable conditions that could lead to a spike in M&A activity. These include the recently introduced lower interest rates, as well as Trump’s upcoming term as President of the United States.

Trump, a businessman himself, has always made a point of creating favorable business conditions and is expected to maintain the lower rates. Without overly high interest rates companies within the gaming sector and beyond might be more likely to consider pursuing acquisitions.

As reported by casino.org, Truist managing director Barry Jonas elaborated that his team believes that 2025 will be the year of gaming operator mergers and acquisitions. Paired with favorable regulations, the low interest rates set up the groundwork for a year of intense M&A activity.

Jonas added that value expectations and bid/ask spreads will be key determinants when it comes to such transactions. He also refrained from theorizing about potential takeovers and buyers.

In any case, those hoping for high M&A activity shouldn’t get their hopes up yet. Last year, analysts were hopeful of a fruitful M&A period in 2024, which ultimately saw a few major deals.

Possible FTC Leadership Change Is Another Beneficial Factor

President-elect Donald Trump recently nominated FTC Commissioner Andrew Ferguson as chair of the commission, replacing chair incumbent Lina Khan. This move, according to experts, might also encourage companies to proceed with M&A bids.

Khan’s leadership served as somewhat of a deterrent when it comes to larger deals since it was under her that the FTC decided to stand in the way of Microsoft’s takeover of Activision and the merger of grocery store chains Kroger and Albertsons.

Ferguson’s leadership, on the other hand, could be more business-friendly. For context, he was the only opponent to the FTC’s recent decision to force lodging and ticketing companies to disclose all hidden fees.

iGaming Spinoffs Are on the Table

In addition to M&A activity, Jonas predicted possible online gaming spinoffs within the broader casino and sports betting sectors. For some operators, such as Penn, online operations have cast a shadow on their land-based businesses.

Caesars, on the other hand, has been largely disappointed in how its lackluster digital business has affected its share price and might also consider spinning it off.