DraftKings Faces Deadline in Potential Bidding War for Entain

Time is running out for DraftKings, who face a Tuesday, October 19th deadline to submit an official offer for Entain, the UK-based gaming powerhouse behind well-known brands such as Ladbrokes and bwin. This situation has the potential to ignite a significant bidding contest, possibly reaching a value exceeding $22 billion.

Entain’s shares surged in September following speculation of a $20 billion proposal from DraftKings. Although the share price has stabilized somewhat since then, it received another boost when MGM Resorts’ CEO, Bill Hornbuckle, expressed interest in acquiring Entain.

MGM and Entain already collaborate on BetMGM, a prominent sports wagering platform. Consequently, a DraftKings acquisition of Entain would disrupt this existing partnership.

JPMorgan analysts suggest that DraftKings might need to divest Entain’s stake in BetMGM to prevent a conflict with MGM. Hornbuckle has firmly stated his unwillingness to relinquish control of BetMGM, emphasizing, “There are methods to structure it, but it must be structured in a way that grants us control and access to technology we can further develop.”

This isn’t MGM’s first attempt to court Entain. They presented an $11 billion offer in January, which Entain declined, ultimately leading MGM to withdraw. The current situation could prove even more captivating.

The prominent gaming corporation, Entain, has experienced a recent surge in success, particularly following its purchase of the esports wagering hub, Unikrn. This triumph has positioned it as a leading prospect for any organization aiming to make a significant impact within the realm of internet gambling.

This positive trend is mirrored in their share value, which has soared by 47% since the year commenced and witnessed a remarkable surge of almost 10% within the preceding month alone.