DraftKings declines to make offer for Entain
The sports betting operator will not pursue the agreement at this time.
DraftKings, the American sports betting giant, has reported that they will not be making an offer for Entain. This comes after further consideration and discussion with the Entain board of directors.
According to Jason Robins, DraftKings CEO, co-founder and chairman of the board: “After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time. Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”
The deal had been brewing for some time. DraftKings had initially offered $20bn for the British gaming operator and then moved its bid price up to $22bn. DraftKings’ proposal would have offered 2,800 pence per Entain share consisting of 630 pence in cash and the rest payable in new DraftKings Class A common shares.
Last week, Entain extended its deadline for a firm offer from October 19 to November 16, further fueling speculation that an offer was on the cards just in a slightly elongated timeframe. That speculation has come to naught.
With this announcement comes the requirement that DraftKings follows the restrictions as set down under Rule 2.8 of the Code for the next six months. According to this rule, it is within the right of DraftKings to set aside the strictures of Rule 2.8 in the following circumstances: an agreement with the board of directors of Entain; the announcement of a firm intention to make an offer for Entain by or on behalf of a third party; if Entain announces a ‘whitewash’ proposal or a reverse takeover; or if a Takeover Panel determines there has been a material change in circumstances.
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