Daily Management Review

US bookmaker DraftKings sets to buy UK rival Entain for $20B


US betting company DraftKings has made an offer to buy British betting and gambling company Entain Plc. This was announced by the British themselves after the information appeared in the media.

Drew Amato via flickr
Drew Amato via flickr
Confirming receipt of the offer, the British company said it would respond to it later, but in the meantime urged its shareholders to take no action. Following the announcement, shares in Entain, which includes well-known betting firms such as Bwin, Ladbrokes, BetMGM (JV with MGM Resorts), Sportingbet and others, as well as gambling companies such as PartyPoker, CasinoClub and others, rose 19% in value.

As the analysts of the UK consulting and financial analysis company Hargreaves Lansdown point out, the revenues of betting and gambling firms increased markedly last year on the back of lockdowns in many countries around the world. On the one hand this has provided a good supply of spare cash and on the other it has made some companies attractive takeover targets. Experts believe that the Americans were attracted to Entain by its American betting division, which would be a great addition to DraftKings' operations.

US gaming and hotel operator MGM Resorts had already made an $11bn offer to buy Entain in January, but the British said the offer "significantly undervalues" its business, after which the US company refused to increase the amount.

source: bloomberg.com