Ladbrokes owner Entain's shares tumble as Draftkings drops $22bn offer
October 26, 2021 at 09:10 am EDT
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Draftkings has said it will not be making a final bid to purchase Entain causing the ladbrokes owner’s share price to shed 7 per cent.
Draftkings had offered 2,800 pence a share in cash and stock for Entain back in September, a $22.4bn offer which represented a 43 per cent premium over the company’s stock price and improved on an earlier 2,500 pence bid.
However, to move forward with the purchase Draftkings needed to give a firm offer by October 19, but missed the deadline after the companies reportedly struggled to agree over the governance structure for BetMGM, the joint venture between Entain and MGM.
Jason Robins DraftKings CEO, Co-Founder and Chairman of the Board today said “after several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time.
“Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market,” the statement added.
Entain, which owns British high street betting shop staples Coral and Ladbrokes, has seen its share price plummet to daily lows of 1,886 pence, down by as much as 12 per cent compared to this morning’s open.
Given that Draftkings has missed the October deadline the company will be unable to make another offer to purchase Entain for at least six months.
Read more: Entain caught between US rivals DraftKings and MGM as £18bn takeover looms
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DraftKings Inc. is a digital sports entertainment and gaming company. The Company provides users with online sports betting (Sportsbook), online casino (iGaming) and daily fantasy sports (DFS) product offerings, as well as retail sportsbook, media and other consumer product offerings. Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 24 states and in Ontario, Canada. Its iGaming product offerings typically include the full suite of games available in land-based casinos, such as blackjack, roulette, baccarat and slot machines. DFS product offering facilitates peer-to-peer play, whereby contestants compete against each other for prize money. The Company also offers non-fungible tokens (NFTs) on DraftKings Marketplace (Marketplace), NFT-based DFS-style contests, gaming software services, and advertising and sponsorship packages to targeted advertisers across its DFS product offering, free games, and media content.