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DraftKings makes a $22.4B takeover offer to UK's betting firm Entain

DraftKings makes a $22.4B takeover offer to UK's betting firm Entain
DraftKings makes a $22.4B takeover offer to UK's betting firm Entain

Renowned UK-based betting company Entain has reportedly been offered a takeover deal worth $22.4 billion (16.4 billion pounds) by DraftKings.  

Sources have reported that Entain's stock increased by around 6% on Wednesday (September 22) on the London Stock Exchange. The speculations about a potential deal have apparently more than doubled its share price this year.

For the uninitiated, the portfolio of sports betting and gambling companies of Entain, formerly known as GVC, comprises of the U.K.’s most established brands like Coral and Ladbrokes. The company claims to have licenses to operate in over 20 countries.  

If sources are to be believed, the alliance between Entain and DraftKings is facing certain difficulties, especially, due to the former’s partnership with the Las Vegas’ eminent casino and entertainment operator MGM Resorts International.

MGM has reportedly offered to acquire entire Entain with an aim to gain access to its online technology. However, Entain rejected the nearly $11 billion offer this year for it was inadequate.

Speaking on the matter, MGM stated that it knew about DraftKings’ offer and any deal with Entain would require its approval due to the partnership between the two companies, which is known as BetMGM.

The company further mentioned that it will engage with DraftKings and Entain to find a solution for the exclusivity arrangements that can meet the objectives of all the parties.

If DraftKings successfully closes this deal, it will supposedly get access to the physical betting locations operated by Entain’s Ladbrokes and Coral divisions.  

Meanwhile, Entain stated that earlier it had rejected DraftKings’s offer of 2,500 pence ($34.12) per share cash and stock. The new offer is the combination of cash and stock worth 2,800 pence ($38.21) per share. Its board will review the new offer, the company added.

Source credits: https://www.ncadvertiser.com/business/article/DraftKings-makes-22-4-billion-bid-for-UK-s-Entain-16479099.php

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.