Takeover Bids for Olympic and Playtech

Takeover Bids for Olympic and Playtech

Entain have been the subject of takeover bids this year but are looking to make a major purchase of their own. A bid of over $1 billion has been made for Olympic Entertainment Company.

That’s an Estonian company that is the owner of casinos and online gambling properties in the Baltic region. They are also heavily involved in basketball as the company holds some overseas NBA gambling rights.

August of last year saw Olympic sign a deal with the NBA. It allows them the use of official NBA data for betting purposes in Slovakia, Latvia and Estonia. That seems to be something Entain are very keen on acquiring.

Over 100 casinos and betting halls see gamblers placing NBA bets. There is also the opportunity to do that online at OlyBet. The NBA has a free-to-play game called ‘NBA Pick ‘Em.’ The Olympic deal has a similar game that is tailored towards players in Eastern Europe.

This year has seen Entain become the target of American gambling companies. They own gambling companies such as Coral, Ladbrokes and Bwin. Any American company taking them over would therefore get a huge stake in the British gambling market.

DraftKings put in a bid of $22.4 billion for the company but October saw the talks come to a close with no deal being secured. Earlier in 2021, MGM Resorts were interested in buying Entain. They work together in the US and were looking at taking over their partner.

This isn’t the only takeover bid taking place in a hectic gambling industry. Playtech appeared to be subject of interest from Gopher Investments. Again, it’s a case of a shareholder looking to get total control of the company.

Gopher Investments are the second-largest shareholders in Playtech. It was believed that they were going to make a £3 billion bid but now say that an offer will not be made. A purchase will be made though. They will be purchasing Finalto for £185 million, that’s the financial trading arm of Playtech.

With Gopher dropping out of the bidding, that leaves Australia’s Aristocrat Leisure and JKO Play Holdings battling to take over Playtech. With Playtech so renowned for the software they produce for poker rooms, sports betting, gambling and online casinos, it’s no surprise so much interest is being shown in them.

Aristocrat have had an estimated $2.7 billion offer for Playtech accepted. Since then though, JKO have shown their interest. They are a consortium that is led by former F1 boss Eddie Jordan. Talks are at an early stage but for their board to recommend the JKO offer, it’d need to be at least 748p a share, that’s 10% higher than Aristocrat have offered.