It looks as if Entain won’t be sold to an American firm anytime soon. There had been talk of DraftKings making a bid for them but that’s not going to happen.
DraftKings have released a statement saying they won’t be making a firm offer after holding discussions on the subject. Their board of directors had held meetings with Entain but those won’t be leading to a takeover bid.
The CEO, Co-founder and chairman of DraftKings is Jason Robbins. He said that there had been talks but “DraftKings has decided that it will not make a firm offer for Entain at this time.” He added that looking at their “vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand,” the company is “highly confident” that they can “maintain a leadership position” in the North America market.
That’s a market that continues to grow. More and more US states are looking at legalizing gambling, particularly on sport. Iowa is the latest state that are looking at how they can head towards legalization. The more that do go ahead with introducing legalized sports betting, the more that DraftKings can introduce a sportsbook.
That won’t include acquiring Entain, well not at present. There had been an October 19 deadline for DraftKings to make a formal offer for Entain. There had been talk in September of a $22.4 billion takeover bid.
Now the deadline has passed, another six months must pass before any further offers for Entain can be made. Only certain circumstances could see this situation change. This would include Entain’s board of directors agreeing one can be made, an offer from a third party or a “whitewash” proposal or reverse takeover taking place.
This isn’t the first time that an American gambling company has been talking about taking over Entain. In January of this year, MGM Resorts International expressed interest in purchasing the UK-based company.
MGM Resorts International made an $11 billion takeover for Entain. They had been working together but the amount offered was nowhere near the valuation that Entain have for their business. That’s a business that includes brands such as Ladbrokes, Coral, PartyPoker and Sportingbet. Acquiring such a business would see the purchasers securing a firm foothold in the European gambling industry.
One American company that has been successful in acquiring a British company are Caesars Entertainment. This year has seen them purchase William Hill, though they soon announced the intended sale of the non-US assets, and 888 Holdings are due to purchase these.
