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Entain respond to Draftkings $20 Billion buyout offer – here’s what they said

The daily fantasy sports operator (DFS) Draftkings has, undeniably, big plans for America. Indeed, only a few months ago, it completed the acquisition of the Golden Nugget online casino. And now it hopes to get its hands on one of the largest online gambling operators worldwide, Entain. Read more about the Entain DraftKings buyout offer.

As you may know, Entain is a true powerhouse in the iGaming industry. They have assets in the USA, of course, with their Party Casino brand and BetMGM venture, which they share ownership with MGM Resorts. So, given the company’s strong positioning in the online gambling industry. It’s no wonder Entain is a company that many hope to buy out.

Indeed, if you remember, in January 2021, Entain’s board rejected an $11 billion proposal from MGM Resorts International. Back then, the offer seemed too low and that it would “undervalue” the business.

Entain DraftKings buyout

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Entain DraftKings buyout – Draftkings is ready to pay $20 billion for Entain

Before explaining the narrative and what’s happening in Entain’s and DraftKings office. It’s important to point out that this story is still unfolding. And that Entain has urged its shareholders, as we understand, to “take no action at this time.”

With that said, given the fact that Draftkings has made 2 proposals to Entain. It’s fair to say they mean business. Indeed, just to give you some back story. On September 19th Draftkings suggested buying Entain for 2,500 pence per share. The initial offer included both cash and DraftKings stocks but was rejected by the board. Then the very next day, DraftKings sent a revised proposal. This time if the 2 parties agreed, it’s 2,800 pence per share the shareholders would get. The proposal includes 630 pence per share in cash. Then the remaining would be forked out in DraftKings Class A common shares.

Entain DraftKings buyout – The board to consider the offer

With so many offers on the table. It’s evident that the board has to “carefully consider the proposal.” And, of course, make “further announcements when appropriate.”

This is the type of response that readers of onlinecasino-nj.com are accustomed to when potential mergers or takeovers surface. These typically have an impact on company share prices. So mum’s the word until the pen touches paper.

But will the pen touch paper in this case?

It’s honestly hard to say. In fact, in August 2021, it was believed by the board that the “total addressable market” could be worth 3x more in the near future and reach up to $160 billion.

Then there is also the matter of MGM Resorts to consider. Because MGM Resorts and Entain are a 50-50 joint venture with BetMGM online casinos, they also could say something about the transaction. In fact. MGM even released this statement “any transaction whereby Entain or its affiliates would own a competing business in the US would require MGM’s consent.”

MGM Representatives have also reaffirmed how BetMGM is valuable for their company’s long-term strategy and, of course, their objective. Yet, they are ready to discuss the matter of “exclusivity” with both DraftKings and Entain should the need present itself in the future.

Entain DraftKings buyout – Meanwhile in Entain’s office…

As the online gambling industry patiently awaits the fate of Entain. It’s business as usual in their office and BetMGM’s. In fact, just last week, the pair announced a new deal with Bill Burr and All Things Comedy (a podcast broadcaster). This agreement should further give the BetMGM brand even more exposure as Burr will add “some juice on the game,” as he said when the deal went public.

This story is still unfolding, and the best way to know what’s happening in New Jersey and abroad is to follow our news by bookmarking this site.

Entain DraftKings buyout

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