DraftKings makes a $22bn offer for Entain
Published: October 3, 2021
DraftKings has made a takeover offer of $22bn to Entain, an iGaming powerhouse from Britain. The London-based provider has confirmed it has received a purchase proposition from DraftKings.
As per their proposal, they would pay roughly $38.20 for a single Entain share. The offer amounts to a premium of 46.2% to Entain’s closure.
After the news about the offer came out, the price of Entain’s shares rose about 18%. If the London-based enterprise accepts the bid, DraftKings will be able to access several prestigious brands and online casinos. Among others, they include Ladbrokes, bwin and PartyCasino.
This is not the first takeover bid the British giant has received. They have already rejected the offer of $11bn from MGM Resorts International.
However, reports say this won’t be the latest bid from MGM. The company is about to receive a handsome amount of $4.4bn after selling MGM Growth Properties to a real estate firm, VICI Properties. The cash accumulation will certainly contribute to a more lucrative bid from the Las Vegas giant.
The offer from DraftKings is not the first one the US company has made. Entain has confirmed they have rejected the previous bid, stating DraftKings now has a deadline to make a substantial offer.
It is October 19, 2021. Lately, the US company has reached an agreement to obtain Golden Nugget Online Gaming for $1.56bn.
DraftKings wants to acquire Entain since the new developments have shown the US market to be an iGaming El Dorado. The Supreme Court nullified a federal betting and iGaming ban in 2018, so the activity skyrocketed in the market.
Since then, many European giants have looked to expand their global footprint by entering the prospective market.
Entain is already active in this market via the partnership with MGM, running BetMGM together. The MGM representatives stated their partners would need consent if they want to enter any deals with their competitors.
The Boston-based enterprise is an iGaming and sports entertainment company looking to deliver the best experience in the sector.
Founded in 2012, it boosts sports fans’ spirits through regulated gaming, fantasy sports and digital media.
They are a renowned provider of gaming technologies and sports betting, doing business with over 50 operators in 15+ markets. DraftKings is also an authorized iGaming provider of both MLB and NBA.