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Entain does not go to DraftKings

A few weeks ago, the report was published that DraftKings would be interested in Entain. The former would have offered the second-named company several billion US dollars, which the group wanted to pay with both cash and shares. As surprising as the offer was made at the time, DraftKings withdrew its offer.

Ein leeres Fußballstadion, in dem weder Spieler noch Zuschauer vorhanden sind.

The takeover negotiations between Entain and DraftKings failed. However, from the start, Entain had no interest in a takeover by DraftKings.(©Pexel/Pixabay)

Acquisition was probably too complicated

When DraftKings the company Enttain submitted a takeover bid, the group did not state the reason behind it. Neither has it been made public why DraftKings is suddenly no longer interested in Entain. Of course, experts always know what could be wrong and publicly announced that the takeover would probably have been too complicated. It is assumed that DraftKings would have had to part with apart of the Entain group if they had made a purchase: From BetMGM.

BetMGM is co-operated with MGM and could not have been further operated by DraftKings. In this area, MGM has a say and as it stands, this would not have been positive. However, this is just an assumption that has not been confirmed by any company.

However, the stock market reacted immediately to the pullback, this time causing shares of Entain to fall by eight percent. DraftKings, on the other hand, was able to increase by six percent. Interestingly, thestock performance at the time of the offer was different: Entain shares were up 15 percent while DraftKings shares were down 6.5 percent.

MGM also failed in a takeover

AfterDraftKings withdrew its own bid, this company is allowed to make the nextDo not make another offer for six months. This provision is based on the commercial law applicable in Great Britain. Only one other company may submit a takeover bid in the near future. However, DraftKings does not mind that negotiations regarding a takeover have collapsed. According to a public statement, the company is confident that it will continue to grow and compete in the gaming market without Entain.

It seems that Entain doesn't want to be taken over at all. The American gaming groupMGM Entertainment already submitted an offer in April of this year. This was not accepted by Entain either. At that time, however, there was a reason – compared to the current situation: MGM only offered 11 billion US dollars. This offer was simply not enough for Entain.

Here, too, the experts think they know how to proceed. They suspect MGM will make asecond bid this time higher than April. Whether or not this actually happens remains to be seen. Since MGM and Entain are already working together, there could actually be a merger sooner or later.

Entain owns many well-known brands

Many gambling fans are not really familiar with the term Entain. This is because the company has onlybeen operating under this name for 10 months. Until then, the group was called GVC Holdings. This name is familiar to most sports betting fans. After all, well-known online casinos and bookmakers hide behind Entain: Ladbrokes, bwin, Sportingbet, CasinoClub, Partypoker and PartyCasino.

This short list shows how well known and loved Entain really is. In addition, these brands are distributed worldwide and Entain has licenses for allfive continents. Such a company requires a certain number of employees. The number of employees is currently 24,000.

DraftKings wanted to use this expertise, acquired over decades, to advance their own business. Unlike Entain, DraftKings is based in Boston and offers betting on sporting events and fantasy sports. The existing range could probably have been well complemented with the range from Entain.

Would DraftKings have kept all online casinos?

So far,DraftKings only offers betting, online casinos with casino games don't seem to be in stock yet. Is that why DraftKings submitted a takeover bid to Entain in order to also be able to offer online casinos with classic casino games? Or would DraftKings have divested and sold that range? There are no answers to any of this, as it is not known why DraftKings expressed interest in Entain, nor is it known why it ended so abruptly.

DraftKings could have used the sportsbook from Entain to expand their range. After all, DraftKings is the company that first introduced online sports betting, and it was in New Jersey. With this, the company laid thefoundation for mobile gaming in the USA. Up to now, DraftKings offers its offer in all US states where sports betting has been legalized. With the online casinos from Entain, however, the company could have operated worldwide. This project cannot be implemented in reality for the time being. But who knows if there will not be another company at some point that can take over DraftKings and thus also gain worldwide fame.

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The article was published on November 3rd, 2021 in the magazine by cpaws-ov.org under the keywords, ,,,,,, published.
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