Exclusive: Analyst speaks on DraftKings, Entain “duopoly”
One of Playtech’s largest shareholders has spoken on the $22bn deal.
Jason Ader (pictured), one of Playtech’s largest shareholders, has spoken exclusively to Gaming America regarding DraftKings’ $22bn bid for the British sports betting giant Entain.
“I just think DraftKings and Entain creates such a powerhouse,” said Ader, contemplating the idea of two of gaming’s largest operators uniting.
“Right now, Flutter is in such a dominant position. But if those two companies merge, it’s going to be so tough for anyone else in the B2C space. It’s going to become pretty much a duopoly, just in terms of customer acquisition, lifetime value, relationships with the leagues and networks.
“It’s a fascinating time, the consolidation is incredible. It makes it harder for Penn/Barstool, harder for Caesars. Maybe one of them links up with Disney/ESPN, and another broadcast network. This convergence with betting and broadcast is becoming a reality and we’ll see a lot more of that.”
Swiftly after these comments were made, Entain announced that the deadline for an official DraftKings bid has been extended to November 16, 2021. This decision has been made to allow the two parties to further discuss the terms of any arrangement.
DraftKings current offer totals $22bn. This consists of 2,800 pence per Entain share consisting of 630 pence in cash and the rest payable in new DraftKings Class A common shares.
On the extension, Entain said: “Discussions between the parties remain ongoing and in accordance with Rule 2.6(c) of the Code, Entain has requested, and the Panel on Takeovers and Mergers (the “Takeover Panel”) has consented to, an extension to the deadline by which DraftKings is required either to announce a firm intention to make an offer for DraftKings in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.”
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