DraftKings reportedly submits $20bn offer for Entain
DraftKings is said to have made an offer to purchase Entain for $20bn.
According to CNBC, the offer is largely in stock, along with cash, and represents the incredible growth DraftKings has enjoyed in recent years.
Since acquiring SBTech and going public via a special purpose acquisition company, DraftKings has seen its market capitalisation soar – and it will be very interesting indeed to see how Entain responds to this offer.
A serial acquirer of brands itself, Entain earlier this year rejected a takeover offer from MGM Resorts International.
MGM Resorts also has a joint venture with Entain in the US: BetMGM.
Entain has confirmed it has received a takeover offer from the operator, “the consideration for which would include a combination of DraftKings stock and cash."
As news broke, DraftKings' share price sat at $53.65, while Entain's stock was valued at £22.27 ($30.40). This, however, is an all-time high for Entain and reports of DraftKings' interest have clearly spurred this increase on even further.
A combination between the two would be fascinating and would create a powerhouse within the industry, given a chief rival of DraftKings' is FanDuel, which is owned by Flutter Entertainment.
Entain operates in markets across the world, prominently so in the UK, US and Australia.
DraftKings, until its takeover of SBTech, was solely focused on the US and its revenue streams remain US-dominant.
The offer made earlier this year by MGM Resorts was said to be worth $11bn and Entain believed this offer significantly undervalued the company.
If these reports prove accurate, how will the industry giant respond to this new, larger offer from DraftKings, a firm that is a full eight years younger than Entain itself?