IAC has sent MGM a letter confirming its support for a deal with Entain, saying it would make the company an “omnichannel global leader.”
US.- MGM Resorts International’s largest shareholder, InterActive Corp (IAC), has vowed to help the company in its bid to buy British betting giant Entain.
IAC holds a 12 per cent stake in MGM but company executives stated they would be willing to increase that in order to provide MGM with the capital to make Entain a higher offer.
MGM made a bid for Entain last week with an all-cash offer of $10bn. The offer was rejected.
A press release from MGM confirming IAC’s stance states: “IAC, has indicated in its letter of intent that it would be willing to consider funding a portion of the partial cash alternative through a further investment in MGM due to IAC’s confidence in MGM and its prospects.
“IAC further indicated in its non-binding letter of intent that it is IAC’s current intention that IAC’s additional investment into MGM for these purposes could be up to US$1 billion. The terms and amount of such investment would require the mutual agreement of IAC and MGM.”
The letter stated that IAC is in agreement with the potential purchase since “the future of gaming will be omni-channel.”
UK regulations state that MGM must confirm or deny that it is making a second offer for Entain by 5pm local time on February 1.