MGM Resorts International Drops Plans To Acquire Entain

MGM Resorts International Drops Plans To Acquire Entain

MGM Resorts International recently announced that it is dropping its plan to acquire Entain. The decision came after the iGaming and sportsbook firm’s investors and stakeholders refused the takeover offer.

Acquisition plans fall flat

The Las Vegas headquartered casino operator which runs prominent venues like MGM Grand Las Vegas, Borgata Hotel Casino, and Spa and the Empire City Casino offered $11.1 billion to buy the British iGaming operator. Entain runs SportingBet, PartyPoker, Ladbrokes, and Bwin brands. The offer to buy was reportedly rejected about two weeks ago. The investors of the London-listed company believed that the proposal undervalued the firm by at least 7%. Note that Entain was formerly known as GVC Holdings.

MGM Resorts International Drops Plans To Acquire Entain

On Tuesday, MGM Resorts International declared that its plans to acquire Entain stand canceled. The firm said that it decided to pull back

“after careful consideration and having reflected on the limited recent engagement between the respective companies regarding [the] rejected all-stock proposal.”

What happens to Roar Digital?

MGM and Entain are working on Road Digital, a joint venture that runs the BetMGM online sports betting platform in the US. MGM CEO Bill Hornbuckle said that the decision will not affect the partnership. He said that BetMGM is a key priority for the firm. He also said that the platform could expand and become one of the top three sports betting platforms in its leader markets. The platform is expected to be operational in 20 states by year-end.

The firm also highlighted that it doesn’t intend to increase its bid for Entain acquisition but remains committed to becoming a global omnichannel company.

Meanwhile, Entain has had a difficult month. The Isle of Man-based firm had to drop its plans to acquire Enlabs AB, a rival firm based in the Baltic region. It is also looking for a new CEO as current chief Shay Segev is moving on to a new position at the global sports streaming platform DAZN.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.