MGM Shareholder Gives $1 Billion Boost to Entain Offer
The possibility of MGM Resorts International acquiring Entain, a company with which it already has a key partnership, may have gotten a boost Friday.
MGM’s largest shareholder, IAC, offered to invest another $1 billion in the company to help with the acquisition. MGM confirmed that information Friday in a news release. In 2018, Entain, which was named GVC at the time, partnered with MGM Resorts International to create the online gaming and sports gambling platform BetMGM.
So far, Entain — which also owns the famous UK bookmaker Ladbrokes — has turned down two offers from MGM Resorts. The previous offer was for $11 billion.
IAC, a media conglomerate, is keeping the pot boiling, though, with the suggestion of furthering its stake in MGM. Barry Diller, of Hollywood fame, is the chairman and senior executive of IAC and that company purchased what amounted to 12% of MGM in August 2020.
Entain is listed on the London Stock Exchange and owns a number of gambling brands, including Ladbrokes and Party Poker.
The MGM Resorts offer for Entain would appear to resemble Caesar Entertainment’s recent acquisition of another UK-based sports gambling company, William Hill. In that case, the expectation is that Caesars will shed the European William Hill operations and maintain the U.S. portion of the company.
New Name for GVC Holdings
GVC Holdings announced on Nov. 12 that it was renaming to Entain, pending shareholder approval. At the time, GVC also said it would embark on a plan for growth and sustainability over the next three to five years.
Entain's Chief Executive Officer, Shay Segev, took over for longtime GVC CEO Kenny Alexander in July. Segev said that renaming the global sports betting and gaming group Entain helps signal the beginning of its new chapter.
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