The UK-based gaming company Entain has issued a statement regarding both the reported $20bn takeover bid offered by DraftKings yesterday and the more recent improved bid. The offers are mainly made up of DraftKings stocks and come after Entain rejected a takeover bid from MGM earlier this year.
The sports betting company issued the statement following an improved bid from DraftKings that increased its offer from $20bn to $22.4bn. This second offer proposed a 3,817 cents per Entain share consisting of 858 cents in cash and the balance payable in new DraftKings Class A common shares.
In its statement the Entain board said: “The board of Entain strongly believes in the future prospects of the company underpinned by its leading market positions, world-class management team and industry-leading technology.
“The company has a strong track record of growth and runway for further significant growth as set out in the capital markets day on 12th August, with the potential for its total addressable market to grow by more than three times to $160bn.”
Overall, the statement urged shareholders to wait for a decision before taking action and claimed the proposal is being “carefully considered”.
In the US, Entain operates via a partnership with the casino giant MGM Resorts, together the two own the sportsbook BetMGM. Earlier this year Entain rejected a proposed $11bn bid from the US gaming institution.
“MGM's priority is to ensure that BetMGM continues to capture the growing U.S. online opportunity and realizing MGM's vision of becoming a premier global gaming entertainment company. MGM believes that having control of the BetMGM joint venture is an important step towards achieving its strategic objectives,” MGM said of the proposal.
“MGM will engage with Entain and DraftKings, as appropriate, to find a solution to the exclusivity arrangements which meets all parties' objectives.”
Currently, it remains to be seen whether Entain will accept this new improved offer. The gaming group confirmed a further statement will be made when appropriate.
