Entain PLC, formerly GVC Holdings PLC (LON: GVC) is reportedly the subject of a $20 billion acquisition bid from US sports betting firm DraftKings.
The UK gambling firm, operator of some of the UK's top casino, sports betting and bingo sites, confirmed this week that it received a proposal from DraftKings, which would include a combination of stock and cash. The bid would give Entain who operate household bingo sites such as Cheeky Bingo, Gala Bingo and Foxy Bingo, a market value of over £13 billion.
Earlier this year, Entain rejected an £8.1 million proposal from MGM Resorts. The two companies operate BetMGM together, an online sports betting partnership in the US. At the time, Entain said the valuation from the casino operator was too low. This week's offer from DraftKings appears to have vindicated that decision.
Whilst Entain resisted the advances of its American partner MGM earlier this year, William Hill accepted a $4 billion takeover bid from its US partner Caesars Entertainment last year.
As well as operating top bingo sites, through its Ladbrokes and Coral ownership, Entain operates more than 3,300 high street betting shops in the UK. Should the deal go through, it would mark a significant expansion for the US company.
DraftKings has seen its business boom throughout the coronavirus pandemic. In Q2, the company reported revenues of nearly $300 million and boosted its sales outlook for the full year to $1.29 billion.
We now wait and see what will happen next in this aggressive bid from the US company.
Ben has been an massive bingo enthusiast and fan since playing at the seaside as a kid. Dedicated to bringing you the latest and best bingo news from the UK