DraftKings bids to buy British rival Entain

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DraftKings, a US fantasy sports and sports betting company, has offered about £ 16.6 billion to British gambling company Enten. This is the second time this year that rivals have acquired a business and attempted to consolidate the fast-growing US market.

Entain confirmed on Tuesday that it had received a takeover offer from a US company.
DraftKings Stock and Cash “.

According to someone with knowledge of the approach, the bid was recently submitted and valued Entain at over £ 25 per share. Although it was not possible to know the exact terms of the offer, CNBC, which first reported the approach, said it consisted primarily of stocks.

A bid of £ 25 per share would bring the value of Entain shares to approximately £ 14.6 billion before the net debt includes £ 2 billion. The shares of the UK listed company were valued at around £ 18 before the trading news was first reported on Tuesday. Since then, they have soared 20 percent to £ 22.83.

DraftKings shares fell 6.5% to $ 53.45 in the morning trading in New York.

Entain was the subject of £ 8bn acquisition bid It was rejected by the US casino group MGM in January.

The FTSE-listed company, which owns the Ladbrokes and Coral betting brands, has a joint venture with MGM to offer sports betting in the United States. This can be a threat if DraftKings bids are accepted.

After private-equity fund Apollo Global Management tried to buy William Hill last year, William Hill’s US joint venture partner Caesars threatened to withdraw if another bidder bought the business.

DraftKings has emerged as one of the most successful companies to publish through special purpose acquisition companies and is widely recognized as a catalyst for the subsequent Spacs boom.

The company’s market value has increased more than 6 times from the beginning Listed at a valuation of $ 3.3 billion In April 2020, due to the merger of Hollywood veteran executive Harry Sloan and Jeff Sagansky’s Spac Diamond Eagle Acquisition Corp.

DraftKings did not immediately respond to the request for comment.

DraftKings bids to buy British rival Entain

Source link DraftKings bids to buy British rival Entain

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