DraftKings Says It Is No Longer Pursuing Purchase of Entain
DraftKings is no longer pursuing a purchase for Entain. The gaming company confirmed that it was dropping its $22 billion bid after discussions and analysis with the Entain Board of Directors.
“After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time. Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”
Bid For DraftKings Expansion
DraftKings acknowledged making a bid for Entain in September before agreeing to extend talks about a deal with a Nov. 16 deadline.
The Entain acquisition would have expanded DraftKings’ presence to betting sites in the U.K. with Entain’s Coral and Ladbrokes brands. DraftKings would also have been able to operate in other countries across the world through Entain’s licenses to operate in numerous countries.
Entain is also a partner with MGM Resorts International, which is one of DraftKings’ biggest competitors in the U.S. market. Entain had previously mentioned that completing a deal with DraftKings would require the support from MGM Resorts International.
According to Bloomberg Business News, DraftKings was unwilling to meet some of Entain’s demands. Entain’s board was also not comfortable with DraftKings shares accounting for much of the offer.
Entain had other concerns about the deal, including assurances about regulatory clearances and management composition of the combined entity.
MGM Involvement With Entain
Entain and MGM Resorts previously were working towards a deal. Earlier this year, Entain turned down an all-stock offer from MGM Resorts that was worth $11 billion at the time. The U.K. company mentioned it rejected the deal because it undervalued the company.
Through their partnership, MGM and Entain operate the popular BetMGM Sportsbook.
With the DraftKings deal falling apart with Entain, it’s unknown whether MGM will attempt to make another bid for Entain.
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