- Entain Plc will remain independent from MGM Resorts.
- MGM’s offer to take over Entain Plc was valued at $11.1 billion.
- Entain Plc claims that the amount offered to them undervalued the company.
LAS VEGAS – Entain Plc has formally dismissed an $11.1 billion takeover attempt from MGM Resorts.
Legal sports betting in the United States has grown dramatically since 2018 when both companies first partnered for their joint venture, Roar Digital. At the time Entain plc was still named GVC Holdings.
BetMGM was the product of their joint venture and has been one of the leading online sportsbooks in the U.S. Earlier this year, both companies doubled their investment into Roar Digital to help BetMGM continue to expand in the growing online U.S. sports betting market.
With that in mind, Entain Plc entered talks with MGM Resorts about a possible takeover. MGM Resorts offered $11.1 billion to take over Entain Plc, but the company ultimately rejected the offer.
“We think that the market has not yet recognized the upside potential and momentum in Entain’s joint venture,” said James Wheatcroft, a Jefferies analyst.
Entain Plc is a rather large sports betting company in the United Kingdom. They own online sportsbooks such as Ladbrokes Coral and Bwin whose values have actually grown due to the United States entering the sports betting market.
Because of such growth, Entain Plc saw an opportunity to enter the U.S. sports betting market and partially did so through their partnership with MGM Resorts. However, differences in strategy have been common since the inception of Roar Digital. The current offer was too low for Entain Plc to accept such a deal given how online sports betting has grown this year.
Although Entain Plc has rejected the offer, that does not mean MGM Resorts can’t counter-offer.
Entain Plc shares have grown by 28 percent since last year, making them an attractive and pricy business to acquire.
Daniel is a writer that enjoys writing to inform readers. When Daniel was writing for The Borgen Project, he liked informing the world about victories in global poverty issues. Daniel is also an avid horse racing fan who has been going to the track with his father for over a decade betting the ponies. When he is not writing about sports betting or at the track, Daniel loves playing video games and watching sports in his spare time.