Filing Flows › Penn Entertainment (PENN) › Takeover & LBO
Is Penn Entertainment (PENN) a takeover target?
A leveraged buyout at today's price plus 30% ($22.48 a share) would return about 9% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $15.64 a share (−10% against today's $17.29).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $22.48 | today's $17.29 plus 30% |
| × shares | 135.4 million | |
| = Equity value | $3.0B | |
| + Debt refinanced | $2.8B | |
| − Cash | $1.0B | |
| + Other claims | −$7.9M | preferred stock, minority interests |
| = Enterprise value | $4.8B | 5.9× EBITDA of $811M |
| Fees | $95.9M | 2% of the price |
| New debt | $3.1B | 3.8× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $1.8B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $7.8B | $866M | $239M | $81.4M | $3.0B |
| Year 2 | $8.2B | $916M | $232M | $109M | $2.9B |
| Year 3 | $8.6B | $961M | $224M | $137M | $2.8B |
| Year 4 | $9.0B | $998M | $214M | $165M | $2.6B |
| Year 5 | $9.2B | $1.0B | $201M | $193M | $2.4B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 5.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $5.2B | |
| − Debt left | $2.4B | |
| = Buyer's equity | $2.8B | |
| Money multiple | 1.55× | on $1.8B put in |
| Buyer's yearly return (IRR) | 9.2% |
Price against return
What the buyer makes at other premiums over today's $17.29; the IRR reaches 20% at $15.64 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $19.02 | 14.6% |
| 20% | $20.75 | 11.9% |
| 30% | $22.48 | 9.2% |
| 40% | $24.21 | 6.5% |
| 50% | $25.93 | 3.8% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $7.3B | |
| EBITDA, last 12 months | $811M | 11.1% of revenue |
| Depreciation and amortization | $473M | |
| Capital spending | $442M | |
| Debt | $2.8B | |
| Cash | $1.0B | |
| Share price | $17.29 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 6.7% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 21% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Penn Entertainment would cost about $22.91 a share, $3.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $20.75 | $2.8B |
| Median | 32.5% | $22.91 | $3.1B |
| High end (a quarter paid more) | 51.8% | $26.25 | $3.6B |
Penn Entertainment's latest quarter
Penn Entertainment, Q3 2026: revenue $1.8B (+7% year over year), operating margin 6.9%, net earnings $32.6M, operating cash flow $263M. The chart follows the revenue to costs, profit and cash.
Questions
Is Penn Entertainment being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Penn Entertainment?
A leveraged buyout at today's price plus 30% ($22.48 a share) would return about 9% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $15.64 a share (−10% against today's $17.29).
What would a takeover of Penn Entertainment cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Penn Entertainment would cost about $22.91 a share, $3.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.