DraftKings Makes $20 Billion Offer for UK Sports Betting Company Entain
Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images. Pictured: DraftKings Logo
DraftKings is reportedly planning its next move in the sports betting space in a big way.
According to a report from CNBC, the company has made an offer to Entain, a UK-based sports betting company, in a takeover deal worth around $20 billion.
That's billion with a 'B'.
The report says the offer was submitted "a few days ago" and is a combination of stock and cash. While "largely in stock", it's not known or stated in the report what the specific mix is in the deal. DraftKings' market cap as of Tuesday morning was around $21.27 billion.
"DraftKings can confirm a proposal has been sent to Entain," the sportsbook said in a statement. "Under the U.K. Takeover Code, we cannot provide any further comment at this time."
Entain confirmed it had received an earlier offer it rejected. The new offer is under consideration, but there's no action at this time. The company added in a statement it was very confident in its current position and projects total addressable market to grow more than three times.
It's a move that would take DraftKings global. Entain is licensed and operates in more than 20 countries in five continents, according to its website. It owns brands like Coral, Ladbrokes, PartyPoker, and Sportingbet. In addition to sports betting, Entain's platform and parternships offer other gambling products including casino, bingo and poker.
This isn't the first time Entain has been in talks with an American gaming company. Entain rejected a deal in January from MGM which valued the company at $11 billion. According to CNBC, that was an all-stock deal.
Still, Entain shares a joint venture with MGM to operate the sportsbook BetMGM, which is legal in several states in the United States and a current competitor of DraftKings.
BetMGM released the following statement on Monday:
MGM is Entain's exclusive partner in the U.S. online sports betting and iGaming market through our highly successful 50/50 joint venture BetMGM LLC ("BetMGM"). As a consequence, any transaction whereby Entain or its affiliates would own a competing business in the U.S. would require MGM's consent.
MGM's priority is to ensure that BetMGM continues to capture the growing U.S. online opportunity and realizing MGM's vision of becoming a premier global gaming entertainment company. MGM believes that having control of the BetMGM joint venture is an important step towards achieving its strategic objectives.
MGM will engage with Entain and DraftKings, as appropriate, to find a solution to the exclusivity arrangements which meets all parties' objectives.
PJT Partners is serving as an advisor to MGM Resorts.
DraftKings has been successful in the stock market since going public in 2019, but stock was down around 6% in the moments after the report. Meanwhile, Entain saw its stock rise by more than 10%.
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