Regulators in the UK have granted DraftKings an extension for the online bookmaker’s proposed €19.4 billion ($22.6/£16.4 billion) takeover of Entain. The original deadline of October 19th has now been extended to November 16th.
According to the Panel on Takeovers and Merger’s code, the board of the offeree can request an extension if negotiations for the takeover are still in progress and yet to be concluded. It’s believed that DraftKings requested the extension due to the complicated nature of the takeover negotiations.
This is in large part down to the fact that there is a third player involved as MGM Resorts is currently a 50-50 partner with Entain in their joint venture — US sports betting operator BetMGM.
MGM Resorts have held fast to the belief that its position as a 50-50 partner in the BetMGM joint venture gives the company the right of approval given that the takeover is backed by one of its US-based competitors in the sports betting market.
Should the takeover go through, DraftKings will improve its grip on the European market as Entain currently owns successful continental brands such as Coral, Ladbrokes, bwin, and Party Poker. The company will also gain access to Entain’s technology which could have ramifications for DraftKings’ current relationship with SBTech.
The second offer from DraftKings which was announced last month valued Entain at €19.4 billion ($22.6/£16.4 billion) or £2.80 per Entain share. The latest offer consisted of 630 pence (£6.30/€7.32/$8.51) in cash with the balance payable in DraftKings Class A common shares. This was a 46.2% premium to Entain’s closing share price on the previous day.
Since then, Entain’s shares have gone up by around 8.6% and MGM’s up by 16% while DraftKings shares dropped by 11%.
If the deal goes through, MGM would need a new tech partner for BetMGM as the US sportsbook currently runs on Entain technology.
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.