DraftKings drops Entain takeover bid

The US sports betting operator DraftKings has ended its talks with the UK’s Entain.

UK.- DraftKings has confirmed that it has ended its talks to buy the UK gaming giant Entain and will not make a firm offer for the group. Entain had extended the US sportsbook’s deadline to make make a firm offer until November 19 following its two bids.

DrafKings initially offered 2,500 pence per Entain share in cash and stock. When that offer was rejected, it followed up with an offer of 2,800 pence per share, valuing Entain at £16.40bn.

Chief executive Jason Robins said: “After several discussions with Entain leadership, DraftKings 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.”

Entain had sought more clarity from DraftKings on what value would be created for Entain shareholders, including their share of potential synergies. There were also questions over BetMGM, Entain’s joint venture with MGM Resorts.

DraftKings said it may still make an offer for Entain in the future if there is a “material change of circumstances”.