The sports betting industry is a fast-moving market that is highly lucrative but also very competitive. It is not uncommon to see sports gambling companies and businesses change hands. Whether it be an online betting software company or an online sportsbook, this rule applies to all within the industry. In the latest gambling news development, DraftKings makes an Offer to Buy Entain, a gambling group from the UK.
For those not familiar with Entain plc., they are famous around the globe for owning several sports betting brands. Some of these brands include bwin, Coral, Ladbrokes, PartyPoker, and Sportingbet which are well known in the UK and Europe. However, Americans know them more for having an online sport wagering partnership with BetMGM.
DraftKings makes an Offer to Buy Entain Worth $20 Billion
According to sports news, DraftKings made a takeover offers to acquire Entain worth $20 billion. The offer to buy the company is a mostly in DraftKings stock along with some cash. Initially, the first offer was for a one share-and-cash offer at £25 a share. However, Entain did not take that offer. Now, a new offer is on the table for £28 a share, £6.30 of which would be in cash.
According to online gambling news, In response, to the offer, Entain shares (ENT.L) went up 18% on the London exchange. For its part, Entain said that it would “carefully consider the proposal and a further announcement will be made”.
The deal is that DraftKings would buy Entain’s non-US assets, including its 1,500 betting shops. Furthermore, it would leave MGM Resorts to buy Entain’s 50% share of its American joint venture.
These types of offers are not unusual in the gambling world. In fact, Last September, Caesars bought William Hill and then last month sold Williams Hills International to 888Holdings. In addition, earlier this year, MGM resorts made an attempt to buy Entain for $11 billion. However, Entain did not take the deal as they said the offer did not give the company enough value.
Ever since the COVID-19 pandemic, DraftKings has been growing at an incredible rate. In addition, ever since the company went public it has risen in value by more than sixfold. If they can acquire Entain, DraftKings would control about 40% of the U.S. sports betting market.
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