Entain boss says U.S. JV played role in sinking $22 billion DraftKings deal talks -Breaking
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© Reuters. FILEPHOTO: A view from the inside of a Ladbrokes in Harpenden. This is as COVID-19 continues to spread in Harpenden. March 18, 2020. REUTERS/Peter Cziborra/File Photograph2/2
(Reuters) – Entain’s U.S. online betting venture BetMGM led to DraftKings (NASDAQ)’s $22 Billion offer to purchase the British gambling and sports company. Entain boss said that Wednesday.
Entain is jointly owning BetMGM (a U.S. competitor to DraftKings) and MGM Casino Group, which are both NYSE-listed.
MGM’s Chief had stated that he would like to control BetMGM if DraftKings agreed to purchase Entain. This deal would have placed the combined company in direct competition to MGM USA.
DraftKings had long considered the complication to be a hindrance in their pursuit of Entain. However, Entain’s Chief Executive Officer Jette Nygaard–Andersen has made the first open admission that Entain played any role in the deal negotiations’ ending.
Nygaard Andersen stated in an interview that “we have always made it clear that our joint venture with MGM provides exclusive access for both parties to any activity involving betting on sports and gaming in the United States.” Although I think this played a part in the transaction, any transaction of such size can be complicated.
Entain is the owner Ladbrokes DraftKings has expressed their confidence in individual prospects and also offers betting services at many other online gambling sites.
The United States has opened up sports betting to the public. This year, the industry is seeing increased dealmaking as companies seek to leverage the experience of British-based companies.
Separately Nygaard–Andersen was one of the few female bosses at British blue chip groups. Entain announced that Entain would launch a diversity initiative in order to educate or train 1,000,000 people by 2030 under a commitment worth 100 million pounds ($135million).
Entain 100 listed said that the initiative was targeted at people from under-represented backgrounds to explore careers in technology.
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