DraftKings Pulls Back From Entain’s Takeover
DraftKings has walked away from its $22.4 billion offer and will not consider a final offer for Entain. In a statement on Tuesday, the sports betting giant said it decided not to pursue a takeover “following further analysis and discussions” with Entain’s board of directors.
Jason Robins, DraftKings CEO, Co-Founder and Chairman of the Board said:
“After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time.”
Despite withdrawing their interest in Entain, DraftKings is confident that, given its current capabilities and technology, it will continue to maintain “a leadership position” and achieve its long-term growth plans in the growing North American market.
Following the announcement, DraftKings shares ended the day 4% up in New York, while Entain shares lost almost 5% on the London Stock Exchange on Tuesday
DraftKings was recently given extra time until November 16 to make a firm offer after the UK’s takeover regulator agreed to Entain’s request to extend the previous deadline of October 19.
Earlier in the year Entain rejected of less than half Draftkings bid from partner MGM.
American gambling operators including the former land-based casinos have been targeting European operators these last months in an effort to exploit the US’ expanding sports betting market. It is expected that the U.S. gambling market will be good for at least $10 billion yearly at maturity
Caesars Entertainment announced the completion of a $4 billion acquisition of William Hill. It later off-loaded William Hill’s non US operations in a deal worth $3 billion.
So what will happen with Entain?
There is a possibility of BetMGM reconsidering further talks. Nonetheless, latest developments open the door for another large U.S. gambling operator, Hard Rock International.
In May of this year, former Stars Group Chief Executive Officer and igaming powerhouse, Rafi Ashkenazi, started as the new executive managing Hard Rock International’s new joint venture focused on online operations. As a result, we might be gearing up to some eye-catching headlines knowing that the new Hard Rock Executive was not (yet) able to fully manifest his unique and progressive vision on the global gambling industry.
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Author: iGaming Team