DraftKings Makes Takeover Offer For U.K.-Based Company Entain
Sports betting and gambling company Entain announced it has received a $20 billion offer from DraftKings.
CNBC was first to report DraftKings’ takeover offer for the U.K.-based sportsbook before Entain later confirmed the report this morning.
“The Board of Entain confirms that it has received a proposal from DraftKings to acquire Entain, the consideration for which would include a combination of DraftKings stock and cash,” the statement from the company said. “There can be no certainty that any offer will be made for the Company, nor as to the terms on which any such offer may be made.”
Entain went on to mention further details will be made appropriate later, while “shareholders are urged to take no action at this time.”
Before news of the deal, the enterprise value of Entain was about $18 billion, according to CNBC. The DraftKings proposal would include a combination of stock and cash. There was no information regarding the price of the offer in the filing.
Earlier this year, Entain rejected an all-stock offer from MGM Resorts worth $11 billion at the time. The U.K. company said it rejected the deal because it undervalued the company.
MGM and Entain have an online sports betting partnership in the U.S. that operates the popular BetMGM Sportsbook.
MGM Resorts International also issued a statement regarding DraftKings’ offer to acquire Entain.
“Any transaction whereby Entain or its affiliates would own a competing business in the U.S. would require MGM's consent,” the statement said. “MGM's priority is to ensure that BetMGM continues to capture the growing U.S. online opportunity and realizing MGM's vision of becoming a premier global gaming entertainment company. MGM believes that having control of the BetMGM joint venture is an important step towards achieving its strategic objectives.
“MGM will engage with Entain and DraftKings, as appropriate, to find a solution to the exclusivity arrangements which meets all parties' objectives.”
Entain is host to a wide range of gaming brands worldwide, including PartyPoker and PartyCasino. PartyPoker was established in 2001, while PartyCasino has a wide range of online casino games bettors can play on mobile devices.
On the sports side, bwin and Ladbrokes are two of its more well-known sportsbooks in Europe.
Here in the U.S. in addition to BetMGM, Entain is partnered with the Borgata in Atlantic City. The hotel and casino is owned and operated by MGM, offering online sports and casino games in New Jersey.
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