MGM Reportedly Plans Business Combination with Entain
The globally recognized and leading American hospitality and entertainment company, MGM Resorts, is reportedly considering a new takeover bid for the leading sports betting and gaming entertainment company Entain
A recent report released by one of the leading financial service providers in the world, Deutsche Bank, suggests that a combination between Entain and MGM Resorts is possible and even represents a “fairly obvious combination.” According to analysts, a combination of the duo is likely to receive the support of shareholders.
Founded in 1986, MGM’s currently valued at £12 billion ($14.9 billion). The company has a significant presence within the gambling capital of the world, Las Vegas, owning landmark properties such as New York-New York, Mandalay Bay and MGM Grant.
On the other hand, Entain is currently worth £8.9 billion ($11.1 billion). Jette Nygaard-Andersen, a Danish businesswoman and entrepreneur is the chief executive officer of the company that continues to grow every year.
A combination between Entain and MGM doesn’t sound like an impossible task. This is, considering that the US giant previously offered some $10 billion to take over Entain a few years ago. However, the takeover bid was turned down as Entain considered the price tag of the deal wasn’t high enough.
Besides MGM, DraftKings, an American sports betting giant, also tried to bid for Entain back in 2021. Similarly to the efforts by MGM, DraftKings’ takeover bid for Entain didn’t progress.
Takeover Bid Likely Faces Delay Due to Gambling Act Review
Analysts suggest that once the government in the UK publishes the review of the main gambling law, the Gambling Act, MGM will likely submit another bid for Entain. This is because the review, which is long overdue and was expected to be released last year, may have a significant impact on the gambling companies. It is yet to be confirmed if the Gambling Act whitepaper will introduce strict measures or implement a more balanced approach to gambling. The outcome of the review may also influence the share of gaming companies. This is precisely why MGM may wait before submitting another takeover bid.
Only recently, Entain revealed it speeds up its plan to exit unregulated markets. This key objective aligns with the company’s plans to ensure that 100% of its revenue will come only from regulated markets by the end of this year. Although Entain confirmed it plans to withdraw from multiple markets, the company said this won’t affect its revenue dramatically.
Jerome is a welcome new addition to the Gambling News team, bringing years of journalistic experience within the iGaming sector. His interest in the industry begun after he graduated from college where he played in regular local poker tournaments which eventually lead to exposure towards the growing popularity of online poker and casino rooms. Jerome now puts all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.
