‍👉 Background: Star Entertainment Group is the Aussie casino group behind big-name venues - Star Sydney, Star Brisbane and the Star Gold Coast. Over the past few years, Star Entertainment has faced a heap of scandals and over that time, its market cap has plummeted from over $5 billion to less than $300 million.

‍👉 What happened: Over the past 12 months, Star has beem running out of cash fast, and Star’s CEO recently revealed they had just $79 million in cash left. So now, rather than collapse, Bally’s Corporation, which owns 19 casinos in the US, has come to the rescue, committing to invest $250 million into Star Entertainment Group. Meanwhile, Star’s biggest shareholder Bruce Mathieson will also tip in $50 million.

‍👉 What else: Thankfully for Star, this new cash will help Star meet its urgent financial obligations. But once the deal goes through, it will give Bally’s majority control of Star Entertainment.

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‍What's the key learning?

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‍💡When a company is backed into a financial corner, it often has to give up control to survive. Star’s situation shows just how far things can unravel… fast. A few years ago, Star was riding high with new developments and casino revamps. But over the last few years, it has faced legal battles, financial missteps and crumbling revenue.  

💡For Star Entertainment Group, the only path forward was external investment. Now Bally’s, with its majority stake can call the shots - for employees, shareholders and customers.

💡Star isn't the first company to go down this route. In 2017, Channel Ten went into voluntary administration after it couldn’t secure a guarantee for a $250 million loan. It was rescued by US media giant CBS which wiped out existing shareholders and took full control.