MGM Resorts has reportedly made an offer for Entain’s business that includes a substantial stock component, after the company previously rebuffed a $10 billion all-cash bid, Wall Street Journal has reported.
Entain Reportedly in Acquisition Talks with MGM Resorts
MGM Resorts is looking to buy out Ladbrokes owner Entain, the company which recently rebranded from GVC Holdings and set out a new vision for its future in the iGaming and betting industries, the Wall Street Journal reported on Sunday.
According to sources close to the matter and cited by the newspaper, Entain has already turned down a previous offer amounting to $10 billion in cash payment.
This is an interesting development considering that the two companies’ joint venture in the United States, Roar Digital, has been quickly taking market share in the sports betting market through BetMGM, a betting firm available in multiple regulated states.
No official comment has come from either MGM Resorts or Entain so far, with the Wall Street Journal arguing that the financial details were not disclosed by sources. However, the media has a good reason to believe that the offer was extended at above trading value per share, which was $17.60 at the time of reporting.
MGM Resorts may try another offer, sources have revealed to WSJ, after the $10 billion all-cash offer was refused by Entain, and a new proposal may now include a solid payment that features both cash and a “substantial stock component,” the WSJ wrote.
Entain’s Commitment towards Customers Remains Strong
Entain’s recent rebranding is a shift towards a more dedicated and safer consumer experience, something that is a priority for the company moving forward.
Under the leadership of Shay Segev, Entain expects to double or even triple its business in the coming years, and become the leading sports betting company in the United States, as well as pull out of all unregulated markets by 2023.
Entain’s commitment to consumers is a top priority, says company director of corporate affairs Grainne Hurst who confirmed the organization’s commitment to consumers.
Entain has been working hard already to establish the future of entertainment with a “think-out-of-the-box” model that doesn’t necessarily involve perceiving potential audiences as sports bettors or gamers in the first place.
Most recently, the company teamed up with Verizon Media for a next-generation of interactive sports betting solutions. Entain is presently trading on the London Stock Exchange as ENT.
According to the WSJ, the new bid comes from IAC/InterActiveCorp IAC, which is MGM Resorts’ largest shareholder. Meanwhile, Entain retains licenses in over 20 countries with recent entries in Latin America and a growing footprint in the United States.
The company owns multiple well-established brands in the gambling and sports betting spaces, including bwin, Ladbrokes, partypoker and partycasino, Gala and Foxy Bingo, Sportingbet, and others.
MGM Resorts and GVC Holdings, Entain’s identity prior to its rebranding in December 2020, formed Roar Digital in 2018, pouring in $200 million to set up operations.