(qlmbusinessnews.com via uk.reuters.com — Tue, 26th Oct, 2021) London, UK —
Oct 26 (Reuters) – Betting firm DraftKings (DKNG.O) walked away from a $22 billion offer to buy gambling group Entain (ENT.L)on Tuesday, becoming the second American bidder to try and fail to take control of the British company.
Entain had already rejected a roughly $11 billion takeover approach from U.S. casino operator MGM (MGM.N) in January.
“After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time,” DraftKings Chief Executive Officer Jason Robins said in a statement.
Entain, home to Ladbrokes and Coral betting shops as well as the bwin and partypoker online brands, said in response its board “strongly believes” in its future prospects as an independent company.
DraftKings shares jumped 7% in premarket trading in New York, while Entain shares fell 11% on the London Stock Exchange, on course for their worst day since MGM dropped its takeover plans for the British firm.
When DraftKings unveiled its offer last month, MGM – which has a U.S. sports-betting joint venture with Entain – said that any deal in which Entain or its affiliates ends up owning a competing business would require its consent. MGM was not immediately available to comment on Tuesday.
Dealmaking in the betting industry has been heating up as the United States opens up to sports betting and companies look to expand into more developed gambling markets such as Britain.
London-listed Entain has enjoyed a boom in online gambling through the COVID-19 pandemic, with events such as last summer's European soccer championship and the U.S. National Football League having helped to revive sports betting.
Reporting by Sachin Ravikumar, Muvija M and Subrat Patnaik
