Finance

DraftKings abandons $22B attempt to buy U.K.-based Entain

DraftKings walked away from a $22B "attempt to buy gambling group Entain," becoming the second American bidder this year "to try and fail to take control of the British owner of Ladbrokes betting shops," according to Ravikumar & M of REUTERS. Neither DraftKings nor Entain explained "exactly why the deal talks foundered." Under U.K. takeover rules, DraftKings "cannot make another bid for Entain for six months unless there is a competing offer." Its pursuit of Entain was "complicated by the issue of BetMGM, a rival to DraftKings" in the U.S. MGM Resorts CEO Bill Hornbuckle had said that he "would have sought to take control of BetMGM if DraftKings had agreed to buy Entain." BetMGM was "viewed as a major factor driving DraftKings' interest in Entain." The U.S. venture has "grown steadily and challenged" FanDuel owner Flutter, "the No.1 player in the American sports betting and online gaming market" (REUTERS, 10/26). The WALL STREET JOURNAL's Matt Grossman notes DraftKings co-Founder, Chair & CEO Jason Robins said that DraftKings is "confident it can grow rapidly in North America without adding Entain" (WALL STREET JOURNAL, 10/26).

EARLY IN THE GAME: CNBC’s David Faber said DraftKings' offer for Entain was "not enough." The fact that much of the offer was in DraftKings stock seemed "to have given Entain some pause," with "control issues around that, perhaps, also.” CNBC’s Jim Cramer: “This is a customer acquisition game, and I think that Jason Robins knows how to spend to get customers. Now at a certain point, will the casinos have an edge simply because they've been set up for betting? I don't think so when it comes to DraftKings, because I think DraftKings has decided, ‘Look, we're not going to lose this game,’ and Jason Robins has a lot of firepower.” Faber said the DraftKings-Entain deal falling through “doesn’t preclude the possibility that at some point there will be consolidation in this sector globally” (“Squawk on the Street,” CNBC, 10/26). 

SBJ Morning Buzzcast: January 17, 2022

NFL's top selling teams and players; Jim Phillips puts CFP expansion on hold and Netflix looks to juice up interest in pro tennis.

SBJ Spotlight: January 14, 2022

SBJ Spotlight: NFL strength, CFP confusion and the stealth Olympics In today’s Spotlight Roundtable, SBJ’s Abe Madkour and John Ourand are joined by LiveLike CEO Miheer Walavalkar and Syracuse sports management professor Rick Burton to talk about big news in sports business. Topics included the ratings strength of the NFL and the Dallas Cowboys; confusion in college sports and the CFP; tech advances and the metaverse; and how NBC is just trying to get through the Beijing Games on the way to Paris and L.A.

SBJ Unpacks: Ben Sutton and George Pyne

Two college football insiders, Teall Capital’s Ben Sutton and Bruin Capital’s George Pyne, discuss the College Football Playoff expansion, driving more value from the championship game and the future of bowl games in this game day edition of the SBJ Unpacks podcast.

Shareable URL copied to clipboard!

https://sbjcd02.centralus.cloudapp.azure.com/Daily/Issues/2021/10/26/Finance/DraftKings.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://sbjcd02.centralus.cloudapp.azure.com/Daily/Issues/2021/10/26/Finance/DraftKings.aspx

CLOSE