DraftKings pulls out of takeover bid for Ladbrokes owner Entain
Bookmaker Ladbrokes will remain in British hands after situs judi slot online tergacor betting firm DraftKings declared it will not make a takeover bid for its parent company.
The American betting giant did have until 16 November to make a ‘put up or shut up’ offer for Entain after being granted a one-month extension last week by the City’s Takeover Panel.
Should a new deal have been agreed, it would have marked the second major takeover of a British bookmaking giant by a foreign company, following William Hill’s £۲٫۹billion purchase by Caesars Entertainment last year.
Rejected: Before takeover talks collapsed, Ladbrokes owner Entain was considering a £۲۸ per share offer from American betting giant DraftKings
Entain, which also owns Foxy Bingo and Coral, has seen immense growth in its online revenues in recent years due to the coronavirus pandemic and the relaxation of sports betting laws in the US.
After rejecting an approach from MGM earlier this year, it received a £۲۵ per share offer from DraftKings that it rejected for being too low before the proposal was upped to £۲۸ per share.
Analysis by the Daily Mail suggested that senior bosses at the FTSE 100 company could have stood to earn £۱۱۰million in payouts if the deal was successfully concluded, with finance chief Robert Wood taking home £۱۲million.
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‘After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time,’ remarked DraftKings chief executive Jason Robins.
Under city takeover rules, DraftKings cannot make another bid for Entain for six months unless there is a competing offer.
Entain’s shares dived by 6 per cent to £۲۰٫۰۵ following the announcement, though they have still soared by more than 40 per cent since the start of the year.
No deal: ‘After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time,’ remarked DraftKings CEO Jason Robins (pictured)
Neither firm explained in any significant detail the main reasons behind the deal’s collapse, with the former stating it would focus on implementing its growth and sustainability strategy.
Laura Hoy, an equity analyst at Hargreaves Lansdown, suspects MGM, with whom Entain runs the joint venture BetMGM, may have made the likelihood of a transaction more complicated.
She said: ‘MGM’s position as a third wheel in negotiations may have complicated matters.We suspect this setup will keep any other offers from rolling in unless they come from MGM itself.
‘The US casino operator already tested those waters and came up empty-handed, so we don’t expect to see much M&A activity in Entain’s future.
‘With that said, Entain’s underlying value proposition remains intact and the absence of M&A speculation means investors can focus firmly on the group’s potential as a stand-alone act.’
BetMGM was viewed as a major factor driving DraftKings’ interest in Entain. The US venture has grown steadily and challenged FanDuel owner Flutter, the number one player in the American sports betting and online gaming market.
MGM was not immediately available to comment on Tuesday.
A deal would have also given DraftKings Entain’s Ladbrokes and Coral betting shops, long a feature of Britain’s high streets, as well as the Bwin and Partypoker online brands.
‘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,’ DraftKings said.