DraftKings announces it will not make a firm offer for Entain ‘at this time’

Sports betting company DraftKings has announced that talks with Entain have been terminated as it will no longer follow up its interest to acquire the company.

DraftKings said on Tuesday the decision was taken after further talks with Entain’s board.

Jason Robins, Chief Executive Officer of DraftKings, said his business was confident in its own technology and brand.

Mr Robins remarked that after several talks with Entain Leadership, DrafKings “has decided that it will not make a firm offer for Entain at this time”.

“Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”

Meanwhile, Entain will use the opportunity awarded to big up its future prospects as an independent business.

Indeed, the board said: “Entain has an outstanding track record of growth having delivered 23 consecutive quarters of double digit online NGR growth, representing a three-year CAGR of 19 per cent across 2021”.

Entain will now focus on expanding its market positions, including expansion in the US, and growth in newly-regulated markets.

The company will also expand into new interactive entertainment experiences, such as esports, and capitalise on its wide range of products to boost customer acquisition and retention, as well as player loyalty.

Earlier this year, DraftKings had made two proposals to acquire Entain. Its first offer, at £25.00 per share offer, included cash and stock. It had been rejected by Entain’s board.

DraftKings then returned with a new proposal of £28.00 per share on 19th September.

Based on the 585,591,361 Entain shares in issue as of 30th June 2021, this would value the business at £16.40bn (€19.23/$22.40bn).