American online sportsbook operator DraftKings Incorporated has reportedly tabled a cash-and-stock offer worth $20 billion that would see it purchase London-listed iGaming and sportsbetting behemoth Entain.
According to a Tuesday report from the online news domain at CNBC.com, news of the proposal immediately pushed the individual value of shares in Entain up by approximately 18% to give the Isle of Man-based enterprise an aggregate valuation of around $18 billion with its potential new parent’s associated appraisal dropping by 7.4%.
Previously known as GVC Holdings until undergoing a late-2020 name change, Entain is already responsible for a slew of online casino and sportsbetting domains including Ladbrokes.com, Bwin.com, Coral.co.uk and Sportingbet.com as well as the United Kingdom’s Ladbrokes and Coral-branded chains of high street bookmakers. The firm also purportedly inked an arrangement last month that is to see it spend in the region of $69.1 million so as to acquire American eSports betting provider Unikrn Incorporated.
CNBC.com reported that Entain was the subject of an about $11 billion takeover approach from MGM Resorts International in January but ultimately walked away from this overture after the American casino operator refused to increase its final valuation. The iGaming giant purportedly used an official Tuesday filing to confirm that it had received the proposal from DraftKings Incorporated but was unprepared to offer any specific details on how such a deal would be implemented.
Reportedly read the filing from Entain…
“A further announcement will be made as and when appropriate. Shareholders are urged to take no action at this time.”
The news service reported that Entain moreover partnered with MGM Resorts International in 2019 to launch the United States-facing BetMGM mobile-friendly sportsbetting service. This alliance purportedly means that the Las Vegas-headquartered company would need to give its consent on any deal that involved its partner’s North American assets.
For its part and MGM Resorts International used a Tuesday press release of its own to declare that it was aware of the DraftKings Incorporated offer for Entain and is now prepared to work with both companies in order ‘to find a solution to the exclusivity arrangements that meets all parties’ objectives.’
Read a statement from MGM Resorts International…
“MGM Resorts International’s priority is to ensure that BetMGM continues to capture the growing United States online opportunity and realizing MGM Resorts International’s vision of becoming a premier global gaming entertainment company. MGM Resorts International believes that having control of the BetMGM joint venture is an important step towards achieving its strategic objectives.”
Finally, CNBC.com reported that DraftKings Incorporated went public last year via a listing on the Nasdaq bourse and is currently licensed to offer its mobile-friendly online sportsbetting services to punters in eleven states including the important markets of New Jersey, Pennsylvania and Illinois. The source disclosed that the Boston-headquartered purchased prominent iGaming technologies innovator SBTech Malta Limited in March before signing a definitive agreement last month that is to see it acquire American iGaming rival Golden Nugget Online Gaming Incorporated.