DraftKings is making a $ 20 billion provide to British sports activities betting firm Entain, sources say
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DraftKings is making a $ 20 billion offer to acquire UK online sports betting company Entain, CNBC’s David Faber said Tuesday.
The offering is largely in DraftKings shares along with cash, according to the sources.
Enttain’s shares rose roughly 17% in London trading on Tuesday. DraftKings shares were down about 6% after the news.
On the Monday before the deal became known, Enttain’s enterprise value was approximately £ 13.2 billion, or $ 18 billion.
In a filing on the London Stock Exchange, Entain’s board of directors confirmed that it had received a proposal from DraftKings that would involve a combination of stocks and cash. The submission did not contain any information on the price of the offer.
“A further announcement will be made if necessary,” noted Entain in the submission. “Shareholders are urged not to take any action at this time.”
The British gaming company turned down an all-share offer from MGM Resorts, valued at $ 11 billion at the time, earlier this year. Enttain said the deal significantly undervalued the company.
MGM and Entain have an online sports betting partnership in the US called BetMGM.
While MGM is not involved in DraftKings’ offering for Enttain, MGM’s approval is required for any transaction involving Entain’s U.S. assets, according to people who know about their partnership.
DraftKings has not responded to CNBC’s request for comment.
Enttain’s brands include UK poker and gaming companies Coral, Ladbrokes and PartyPoker.
DraftKings went public in 2020 through a reverse merger with a special purpose vehicle. The online gaming giant runs fantasy sports competitions and sports betting.
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