Entain confirms takeover offer from DraftKings, reported to be worth $20bn

Ladbrokes owner Entain PLC has received a cash-and-shares offer from US-based online betting and fantasy sports group DraftKings Inc, it confirmed on Tuesday.

The potential takeover bid is worth US$20bn (£14.7bn), CNBC reported earlier.

The FTSE 100 group, which also owns brands including Coral, Sportingbet, Bwin, Gala Bingo and Foxy Bingo, put out a statement confirming that it has received “a proposal from DraftKings to acquire Entain”.

It stressed that there was no certainty that any offer will be made for the company, nor as to the terms on which any such offer may be made, so urged shareholders to take no action yet.

Back in January, Entain rebuffed an all-share offer from MGM Resorts International this year that was worth 1,383p per share at the time or around £8bn.

Entain said at the time that the offer from its partner in its US betting joint venture “significantly undervalued” its business.

It has been speculated that MGM Resorts may return for another go, though the price of the bookmaking group has risen by over 50% since.

Shares in Entain spiked 16% to 2,223p on Tuesday afternoon in London, while Draftkings fell 6% to $53.68 and MGM Resorts 3% to $40.01 in New York.

Story by ProactiveInvestors