MGM Decides to Not Continue its Pursuit to Acquire Entain

MGM Decides to Not Continue its Pursuit to Acquire Entain
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MGM Resorts International announced Tuesday it will not submit a revised proposal and firm offer for UK-based gaming compnay Entain.

Earlier this month, Entain had rejected MGM’s $11 billion dollar deal as being too low. On Jan. 8, MGM’s largest shareholder, IAC, offered to invest another $1 billion with MGM to help with the acquisition of Entain. The initial offer from MGM for Entain was $11 billion.

BetMGM, our U.S. sports betting and online gaming venture with Entain, remains a key priority for the company as we continue to leverage our preeminent physical gaming, entertainment, and hospitality platform to expand digitally,” Bill Hornbuckle, chief executive officer of MGM Resorts International, said in a news release. “We believe that BetMGM has established itself as a top three leader in its markets and we remain committed to working with Entain to ensure its strong momentum continues as it expects to be operational in 20 states by the end of 2021.”

Entain, formerly known as GVC Holdings, is already partnered with MGM Resorts in the online gaming and sports wagering platform BetMGM. In a statement Tuesday Entain said: "We look forward to continuing to work closely with MGM to drive further success in the United States through the BetMGM joint venture."

In the release, MGM also said it is “committed to being a premier global omni-channel gaming and entertainment company, and will maintain a disciplined framework while evaluating a range of compelling strategic opportunities.”

Entain, listed on the London Stock Exchange, saw its shares drop about 15% on Tuesday’s news from MGM. Entain owns a number of gambling brands, including Ladbrokes and Party Poker.

Entain CEO Announced His Departure

On Jan. 11, Entain announced that CEO Shay Segev will be leaving the company for another business opportunity. Segev will become co-CEO of DAZN, a privately-owned global sports streaming platform. Both he and Entain said that his decision was not related to MGM Resort International’s bid for the company.

Segev said he would remain in his current position for six months or until a successor is named. The new CEO will have to deal with possible takeover bids.

At the time of its name change to Entain in November, GVC also said it would embark on a plan for growth and sustainability over the next three to five years, presumably with Segev in charge. Segev took over for longtime GVC CEO Kenny Alexander in July.