DraftKings drops Entain purchase talks

DraftKings drops Entain purchase talks

Published: November 5, 2021

DraftKings, a well-respected iGaming brand, has revealed it won’t be making a bid to purchase Entain. The two firms have been in long takeover talks since September 2021, but DraftKings has announced it won’t act on its interest.

The enterprise has decided against making an offer after a long string of discussions with Entain. The new deadline was set to November 16, 2021, but DraftKings has decided to terminate the takeover negotiations instead.

The buying company has proposed a deal amounting to $22.4bn after Entain has rejected the $11bn bid from its partner MGM. Any agreement that would make Entain MGM’s competitor in the US market would have needed their written consent.

Given the quality of its products and technology, DraftKings still thinks it can maintain its market-leading position. If the opportunity arises, they might allegedly make a new bid under a different set of circumstances.

The latest developments have increased the value of DraftKings shares, while the Entain shares have dropped by 11%.

US gaming companies have been increasingly targeting European operators in recent months to take advantage of the blossoming market. However, Entain is certain it will be able to cement its market status.

It will focus on expanding its activities by dabbling in esports and utilizing its products to boost player loyalty. The company executives are sure the firm will progress in the future by enhancing customer acquisition and retention.

Entain will now run its business independently, and its representatives are confident it will succeed. The outstanding record of twenty-three successive quarters of two-digit online NGR profit speaks for itself.

It hopes to expand its global footprint, enter new markets and continue stable growth, realizing its long-term strategic plans. Only time will tell if they are successful, but the prominent operator is not afraid of the future.

About Entain

Entain is one of the largest iGaming and sports betting entertainment groups and home to over 25 famous online casinos, including bwin, Party Casino and Gala.

It constantly looks to expand its global influence and revolutionize the industry with high quality and technology.

It aspires to become the world leader in the field with its experienced 24,000-strong team in 19 different countries. The goal of the company is to make people happy and put them at the center of the action.

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