MGM Resorts to seek majority control of BetMGM amid takeover bid
Speaking at G2E, the MGM Resorts CEO highlighted the need to control its online sports betting asset.
As reported by Bloomberg, the chief executive officer of MGM Resorts International, Bill Hornbuckle, has been speaking at G2E on DraftKings’ reported $22bn Entain takeover bid.
MGM Resorts International is part of a joint venture with Entain, the two share ownership of the US-based sports betting platform BetMGM. Hornbuckle has stated that if DraftKings reaches a deal to purchase Entain, he will seek majority control of the online sportsbook.
“We’d have to come to some resolve. We have 50% now. I would like more. I would need more,” the CEO said in an interview.
“There’s a lot of ways to structure it,” Hornbuckle added. “The only thing that would be successful for us is if we got control of it and had a technology that we could proceed with.”
Speculation when the bid first came to light suggests that MGM Resorts had the power to veto any takeover bid that would impact its BetMGM product. It is now believed that any company to takeover Entain would not be able to operate BetMGM without the casino giant’s approval.
More information on the attempted acquisition will be known soon, as under UK law DraftKings has until October 19 to present a formal offer to Entain.
DraftKings’ attempted acquisition came as an initial $20bn offer, made up mostly of shares, and was quickly followed up by an improved $22bn bid. Earlier this year MGM Resorts International also attempted to purchase the British operator, offering $11bn, which was promptly dismissed as too low.
During his interview, Hornbuckle confirmed that no official decision has been made regarding the operation of BetMGM should Entain be acquired.
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