DraftKings makes audacious bid for Entain

As more US states look into legalising gambling, Entain is the latest British gambling business to be targeted by an American rival (after 888 Group’s announcement of purchasing William Hill in September)

As more US states looking at into legalising gambling, Entain is the latest British people gaming business to be targeted past an American competitor (after 888 Group’s proclamation of purchasing William James Jerome Hill in September).

Harry Barnick, Senior Analyst at Third Bridge (research steadfastly providing securities industry intelligence activity for investors) commented on the offer: “DraftKings has made a USD 20B offering to win Entain. The proffer almost doubles the bidding made by MGM Resorts earliest this year, which was rejected past shareholders. DraftKings' insolent conjure indicates its willingness to go away head-to-head with Flutter-owned FanDuel.”

A statement from Entain said: “The plank of Entain confirms that it has received a proposal from DraftKings to gain Entain, the considerateness for which would include a combination of DraftKings caudex and cash.”

While the financial statement did non expose the terms of the approach and added in that respect was no certainty a deal would live done, Entain’s shares surged past almost a 5th on the intelligence of the offer from the US sports betting firm.

Entain, which owns a legion of online betting brands (including Bwin, Sportingbet and PartyPoker) and o'er 3,300 street bookmakers, had antecedently rejected a takeover extend of £8.1bn ($11bn) made by MGM Resorts inward January.

Barnick added: “As shareholders mull o'er the deal, triplet paint questions remain. What will materialize to the MGM Resorts partnership below DraftKings' ownership? Could we regard a counter offering trail to a bidding war? Then with the undulation of consolidation we are seeing inwards the market, including 888’s recent acquisition of William Hill’s international assets, investors’ will simply be wondering: which keep company could follow targeted next?”