The US sports betting juggernaut DraftKings is set to make a decision regarding its $22bn Entain takeover bid today, as per a deadline set by the UK’s official takeover authority.
Specifically, Tuesday 19 marks the deadline for the sports betting operator to make an official bid for the British company.
DraftKings’ initial $20bn bid was reportedly rejected by Entain, however, the follow-up, which is made up mostly of stocks, is more likely to receive approval from Entain’s executives.
Earlier this year, MGM Resorts International failed in an $11bn takeover attempt, with Entain quickly dismissing the offer as far below the operator’s value.
Entain is currently a 50% owner of the US-based sports betting platform BetMGM. MGM Resorts, the sportsbook’s other owner, has highlighted that any deal between Entain and DraftKings would jeopardize BetMGM, forcing the company to act.
“We’d have to come to some resolve. We have 50% now. I would like more. I would need more,” said MGM Resorts International’s chief executive officer, Bill Hornbuckle, while speaking at G2E earlier this month.
“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.”
There has been media speculation regarding MGM’s right to veto any deal that could disadvantage its product, as per Hornbuckle’s comments, one outcome could see MGM seek majority control of BetMGM in the near future.
