DraftKings’ $22 billion takeover proposal for Entain confirmed

British iGaming giant Entain has confirmed that it has received a takeover proposal from US sports-betting behemoth DraftKings worth $22.4 billion (€19.1 billion).

Under the proposal, DraftKings is offering £28 (€32.57) per Entain share, which is 46.2 per cent higher than the shares’ value on market close on Monday.

Based on the 585,591,361 shares of the company in issue at the end of H1 2021, this offer values the business at $22.4 billion (€19.1 billion).

Entain also revealed it has rejected a previous proposal from the company to purchase it for £25 (€29.08) per share.

The deal would see DraftKings get access to Entain’s Ladbrokes Poker and bwin online betting brands.

Confirming the offer in response to media speculation, the company clarified that while a proposal has been made, there is “no certainty” that a formal offer will materialise.

Under the City Code on Takeover and Mergers, DraftKings must either announce “a firm intention” to make an offer, or announce it does not intend to make and offer within a month.

It is not the first takeover bid Entain has been subject to this year, with the company earlier rejecting an $11 billion (€9.38) bid from MGM Resorts International, which it is partnered with for the US-facing BetMGM betting and iGaming business.

It comes amidst a flurry of acquisitions, as regional and national operators look to opportunities presented by the liberalisation of the gambling markets of many US states for expansion.