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DraftKings makes bid to acquire UK rival Entain

Entain PLC updates

DraftKings, the US fantasy sports activities and sports activities betting firm, has made a roughly £16.6bn provide for the UK playing firm Entain, the second time this yr a rival has sought to amass the enterprise and consolidate the fast-growing US market.

Entain confirmed on Tuesday that it had acquired a takeover provide from the US firm, “the consideration for which would come with a mixture of
DraftKings inventory and money”.

The bid was submitted in latest days and valued Entain at greater than £25 a share, based on an individual with information of the strategy. The precise phrases of the provide couldn’t be realized however CNBC, which first reported the strategy, mentioned it was comprised of largely shares.

At £25 a share, the bid would worth Entain shares at roughly £14.6bn earlier than the inclusion of £2bn in web debt. The UK-listed firm’s shares had been valued at round £18 earlier than information of the deal was first reported on Tuesday. They’ve since jumped 20 per cent to £22.83.

Shares in DraftKings dropped 6.5 per cent to $53.45 in mid-morning New York buying and selling.

Entain was the topic of an £8bn takeover bid from the US on line casino group MGM in January, which it rejected.

The FTSE-listed firm, which owns the Ladbrokes and Coral betting manufacturers, has a three way partnership with MGM to supply sports activities betting within the US, which could possibly be underneath risk if the DraftKings bid is accepted.

After the non-public fairness agency Apollo World Administration tried to take over William Hill final yr, William Hill’s US three way partnership accomplice Caesars threatened to drag out if one other bidder purchased the enterprise.

DraftKings has emerged as one of the crucial profitable firms to go public via a particular objective acquisition firm and is broadly thought to be the catalyst for the following increase in Spacs.

The corporate’s market worth has risen greater than sixfold because it first listed at a $3.3bn valuation in April 2020 via a merger with Diamond Eagle Acquisition Corp, a Spac led by veteran Hollywood executives Harry Sloan and Jeff Sagansky.

DraftKings didn’t instantly reply to requests for remark.

https://www.ft.com/content material/613a232a-5a77-4e58-a3b2-4a3af69af88f | DraftKings makes bid to amass UK rival Entain

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