MGM Confirms Entain Merger Proposal
If this merger does comes to fruition, it could well be the most significant shift in gambling business ownership in the last decade.
Land-based betting giant MGM Resorts International has confirmed that it has made an offer to merge with igaming operator Entain (GVC Holdings). Entain is the proud owner of brands such as Ladbrokes, Coral, Bwin, PartyPoker , SportingBet, Gala Bingo, Eurobet and Betboo.
If this merger does comes to fruition, it could well be the most significant shift in gambling business ownership in the last decade.
While little information has been provided about whether the deal offer has or will be accepted, sources say that the deal will be made up of 0.6 MGM shares for one Entain share, representing a value of 1,383 pence per share and a premium of 22% to the company’s share price. This values the firm of £8.1bn.Entain shareholders will keep hold of around 41.5% of the combined company.
Adam Greenblatt, CEO at BetMGM, commented:
“I can’t think of a better way to kick off the new year than by launching BetMGM in Iowa, a state well known for its passionate sports fans.
“Our connection with MGM Resorts enables BetMGM users in the Hawkeye State to earn rewards, from hotel suites to dinners at award-winning restaurants, all while engaging in the excitement of our cutting-edge sports betting experience.”
Analysts believe that the cooperation between Entain and MGM could prove a serious threat to leading brands such as FanDuel and DraftKings.
