US casino giant MGM Resorts has decided not to submit a revised bid or make a firm offer for Entain, the operator of Ladbrokes and PartyGaming. The initial proposal, which valued Entain at $11bn, was rejected by Entain’s board as it considered the bid to significantly undervalue the business. Despite this, both companies stated that their failed takeover would not impact their ongoing partnership in the BetMGM joint venture. This joint venture, established in 2018 with a $200m investment, aims to accelerate BetMGM’s growth in the US sports betting and online gaming market.
MGM Resorts CEO Bill Hornbuckle expressed the company’s commitment to BetMGM’s success, believing it to be a top-three leader in its markets. Entain also expressed confidence in its growth strategy, underpinned by its market-leading technology.
Under the City Code on Takeovers and Mergers, MGM Resorts reserved the right to reconsider its decision not to pursue an offer under certain circumstances. This includes if Entain’s board agrees or if another business makes a bid to acquire Entain. In the event of a reverse takeover or significant change in circumstances, MGM Resorts could also come back with a new offer.
Shares in MGM Resorts are currently trading down 1.59% at $29.80 per share in New York, while shares in Entain have fallen 16.59% to 1,179.0 pence per share in London.
