After Entain’s confirmation, MGM Resorts International has now acknowledged publicly that it has indeed pitched a proposal for a merger with Entain, looking to consolidate the companies’ footprint globally and in the United States.
MGM Confirms Proposal for Merger with Entain
MGM Resorts International has confirmed that it has made a proposal to merge with US sports betting behemoth Entain plc, the recently rebranded GVC Holdings, which is heading in a new direction under the adept leadership of its chief executive, Shay Segev. The news was first reported by the Wall Street Journal on Sunday.
While a proposal has been floated, MGM Resorts has remained coy about the prospect of actually acquiring the company or making a formal offer for that matter. The offer has been pitched at a 22% premium of Entain’s price share at the time or 1,383 pence per share.
The valuation puts the company at over $10 million, but Entain is still not sure this properly assesses the prospects of the company and all of its assets. As reported previously, should a proposal and offer go through, Entain’s shareholders would retain 41.5% control of the company.
Entain is slightly sceptical of the pitch, though. Sporting a fantastic portfolio of brands, and not least partypoker, Coral, Ladbrokes, Bwin, Gala and Foxy Bingo, Betboo, Eurobet, SportingBet, and others, Entain is quickly expanding across the United States, Latin America, and repositioning across key markets around the globe.
Its ambition is to push for dominance in the U.S. sports betting market is shaping up as well through the partnership it runs with MGM Resorts through the companies’ joint-venture, Roar Digital and the dedicated sports betting brand BetMGM.
What’s the Rationale, Asks Entain
Entain wasn’t sure about the rationale behind the proposal, noting it may have undervalued its assets, but MGM Resorts assured that the “rationale for the combination is compelling.” A merger with Entain will expand and diversify both companies strategic growth and bolster U.S. pivot.
Furthermore, a merger would lead to better product offerings, increased earnings, growth and investment opportunities, a dedicated technology platform, which Entain owns, and a solid balance sheet, MGM added.
Noting that no further details may be disclosed, MGM announced that the BetMGM mobile app had launched in Iowa, joining seven other states. Mobile apps have gone live in Iowa with William Hill and PointsBet announcing an entry at the turn of the year when the state eliminated in-person registration for remote betting.
BetMGM CEO Adam Greenblatt had this to add about the new app launch: “I can’t think of a better way to kick off the new year than by launching BetMGM in Iowa, a state well known for its passionate sports fans.”
He further noted that BetMGM and MGM Resorts has been able to connect with the sports fan base in the Hawkeye State, and now enables everyone to earn rewards in an exciting and intuitive way.