DraftKings is expected to decide today, Tuesday, October 19, whether or not to make a formal bid to buy Entain under Britain’s corporate takeover rules, starting a ‘war’ worth over 22 billion of bidding dollars.
Shares in UK-based Entain, which owns many big brands like Ladbrokes Coral and bwin, hit a record in late September after DraftKings submitted a $20 billion takeover offer.
This sparked a rise in its share price, which fell only to be boosted again by MGM Resorts CEO Bill Hornbuckle when he announced his company’s intention to buy Entain in early October.
MGM Resorts co-owns sports betting company BetMGM with Entain, and how this joint venture would work following an acquisition of DraftKings has been a subject of considerable debate.
According to analysts at JP Morgan, DraftKings could be forced to sell Entain’s stake in the company to prevent MGM Resorts from blocking its buyout offer.
MGM Resorts aims to gain full control of BetMGM
Hornbuckle steadfastly rejected any solution that would cause MGM to lose control of the sports betting subsidiary, commenting: “There are many ways to structure it. which we could proceed”.
This came after Entain rejected an $11 billion bid from MGM in January, which then declined to submit a revised bid.
Having grown since then, with its latest acquisition being sports betting brand Unikrn, Entain is sure to present a dear value to any potential buyer. Since the beginning of this year, the group’s share price has risen 47%, with an increase of almost 10% in the last month alone.
DraftKings is a digital sports entertainment and games company created to fuel the competitive spirit of sports fans with products that span fantasy sports, regulated games and digital media.
The company is a multi-channel provider of sports betting and gaming technologies, providing sports and gaming entertainment to more than 50 operators in more than 15 regulated markets.