Stock Groups

DraftKings Weaker on Worries It’s Paying Too Much for U.K.’s Entain By Investing.com

by Mike Robinson

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© Reuters

By Dhirendra Tripathi

Investing.com – DraftKings stock (NASDAQ:) traded 0.8% lower in Wednesday’s premarket on worries over the aggressive bids the company continues to lure U.K.’s Entain (LON:) with for a possible merger.

On Tuesday, 7.4% of shares closed lower after Entain received the offer.

DraftKings renegotiated its offer on Sunday after Entain rejected its initial bid. Analysts considered it too high.

DraftKings is now offering 2,800 pence per Entain shares. The offer includes 630 pence of cash and the rest in draftkings shares. The latest offer is a premium of 46.2% to Entain’s closing share price on September 20 and amounts to about four times the company’s 2020 revenue of 3.62-billion pound sterling (roughly $5 billion).

Entain indicated that they are currently studying this offer. DraftKings will need to announce their firm intent to purchase DraftKings’ shares by October 19.

It said the deadline will only be extended with the consent of the U.K.’s Takeover Panel.

Entain is one of the world’s largest sports-betting and gaming groups, operating both online and in the retail sector. Entain has licensed in 27 countries, employs more than 24,000 people.

The Group is the operator of BetMGMGM in the United States. This joint venture with MGM Resorts (NYSE): 

 

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