Entain's statement said DraftKings' improved offer was priced at £28 per share, giving a value of £16.5 billion (US$22.5 billion).
Under the City Code on Mergers, DraftKings now has until 19 October to submit a firm offer. Entain has noted that no such bid may be forthcoming.
The updated statement saw Entain’s board talk up the operator’s prospects as an independent business. Its future opportunities, it said, were “underpinned by its leading market positions, world class management team and industry-leading technology”.
“The company has a strong track record of growth and runway for further significant growth as set out in the capital markets day on 12 August, with the potential for its total addressable market to grow by more than three times to US$160bn,” the board explained.
“This includes its leadership position in the rapidly growing North American market through its Joint Venture BetMGM. Entain has the most diversified and regulated revenues of any of the global operators and leads the industry in player protection through its ARC programme (Advanced Responsibility and Care).”
Earlier this year, Entain was the subject of a rejected US$11bn bid from MGM Resorts International, its joint venture partner for the US-facing BetMGM betting and igaming business. Entain at the time said the bid undervalued its business, and MGM opted against making a higher offer.
In the first half of the year, Entain saw its H1 2021 revenue grow 12.2% to US$2.45bn, and profit more than double. However, it did see a 34% drop in revenue from Germany due to the country’s transition regime for online gaming.
Almost all of Entain’s net gaming revenue – up 28.4% from 2020 – was made online.
DraftKings, meanwhile, raised its revenue guidance in H1 after recording half-year revenue of US$609.8m, up 282.3% from 2020. Soon after publishing its H1 results, the operator announced a deal to acquire 100% of Golden Nugget Online Gaming (GNOG) from Fertitta Entertainment, Inc in a US$1.56bn all-stock deal.
The combined group is therefore likely to bring in annual revenue in excess of US$6bn.
Source: GMB / iGB
