MGM seeks to acquire Entain
The purpose of MGM Resorts International's planned acquisition of Entain is to strengthen its presence in the online gaming market. Entain, formerly known as GVC Holdings, is the parent company of a number of betting-related companies, including Ladbrokes, Coral, and SportingBet, among others.
BetMGM was established as a partnership between MGM and Entain in 2018, with the intention of operating together in the US sports betting industry. The recently established online gambling operator utilizes the technology developed by Entain as well as the licenses and trademarks owned by MGM. It now has operations in more than ten states, including Nevada, New Jersey, and Indiana, and it intends to expand to twenty states by the end of this year.
According to the Wall Street Journal, the total amount of the offer has not been published; nevertheless, it is anticipated that each share would be valued at £12.85 ($17.56). Should Entain decide to take up the offer, the business will have a substantial presence not just online but also with its assets that are located on land. The offer would be comparable to Caesars Entertainment's acquisition of William Hill, which was valued at $4 billion and is expected to be finalized in March. The offer would be made in the month of March.
Entain issued the following statement on the offer: "Entain has advised MGMRI that it thinks that the proposal grossly undervalues the Company and its prospects. "
"The Board has also asked MGMRI to give more information about the strategic rationale for a merger of the two firms," which means that the board has requested this information.
