Business & Investment

Record a record hit with Reuters’ $ 22 billion DraftKings

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© Reuters. File photo: March 18, 2020, overview of the Ladbrokes shop in Harpenden, England. REUTERS / Peter Cziborra / File Photo

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(Reuters)-Entertain’s stock surged 10% on Wednesday to a record high after a gambling company announced a $ 22.4 billion takeover offer from US-based DraftKings (NASDAQ :). This was twice the bid rejected by MGM earlier this year.

The UK Group’s share price reached £ 24.9 after the opening bell of the Great Britain Index, compared to DraftKings’ proposed £ 28 per share. This is a 46.2% premium on Monday’s closing price for Enten.

The market is also pricing with the prospect of another bid from the casino group MGM, which Entain has a joint venture in the United States. Entain rejected the $ 11 billion approach from MGM in January.

By 0745 Greenwich Mean Time, Entain’s share price had risen 8% to £ 24.4.

Dealmaking is increasing in online games as the United States opens its doors to sports betting, players are expanding and leveraging the expertise of foreign companies that have been active in the market for longer.

Caesars (NASDAQ :) Entertainment acquired William Hill in the United Kingdom in a £ 2.9bn transaction earlier this year.

Analysts at JP Morgan said DraftKings’ proposal to Entain must be attractive in order to abandon MGM’s desire to control BetMGM, a joint venture with Entain.

MGM said on Tuesday that transactions leaving Entain with competing businesses in the United States would require MGM’s consent.

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Record a record hit with Reuters’ $ 22 billion DraftKings

https://www.investing.com/news/stock-market-news/entain-shares-soar-to-life-high-after-draftkings-224-billion-buyout-proposal-2622964 Record a record hit with Reuters’ $ 22 billion DraftKings

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