Entain CEO Steps Down as MGM Makes Takeover Bid for Company
Entain PLC, a UK-based gaming company, announced that its CEO has will be leaving the company for another business opportunity.
While Entain CEO Shay Segev has given notice of his intention to leave Entain to become co-CEO of DAZN, a privately-owned global sports streaming platform, both he and Entain also said that his decision is not related to MGM Resort International’s recently disclosed offer to acquire Entain. So far, Entain has rebuffed MGM Resorts, saying that the Las Vegas-based company’s offer, reported at $11 billion, “significantly undervalues the company and its prospects.”
On Friday, MGM’s largest shareholder, IAC, offered to invest another $1 billion in the company to help with the acquisition.
Among Entain’s many brands are BetMGM, Ladbrokes and partypoker.
Regarding Segev, he has a notice period of six months and will remain in his current role for that period or until a successor is in place, Entain said in a news release.
“We are sorry that Shay has decided to leave us but recognize that we cannot match the rewards that he has been promised,” Barry Gibson, chairman of Entain, said in the statement.
“Entain has a wealth of talent across its leadership team and the business has never been stronger. The company has delivered 20 quarters of double-digit online growth, and our future prospects have been substantially enhanced by our new strategy, which we set out in November.”
Gibson also noted: “I can confirm that this changes nothing with respect to the board’s view of the recent proposal from MGM Resorts International to acquire Entain. The Board remains unanimous in our view that the proposal significantly undervalues the company and its prospects.”
Entain Formerly Known as GVC Holdings
For his part, Segev said, “I will be sad to leave the company after five years but I have been offered a role which offers me a very different type of opportunity. Entain is in great shape after the successful launch of our new strategy. I also want to emphasize that the recent interest from MGM Resorts has had absolutely no bearing on my decision, and I fully support the board’s decision to reject their proposal.”
Segev took over for longtime GVC CEO Kenny Alexander in July and said at the time that renaming the global sports betting and gaming group Entain was a way for the company to begin a new chapter. That new chapter will apparently begin without him.
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