DraftKings is dropping its $22.4 billion effort to acquire Entain. The sports betting giant was vague on its reasons for dropping out of the pursuit, though it did hint that its pursuit of the UK gaming company, and operator of the US-facing BetMGM sportsbook, could emerge again.
Executives at both companies are legally bound to remain tight-lipped about the deal’s collapse. In a statement reported on by SBCAmericas, DraftKings CEO, Co-Founder and Chairman of the Board, Jason Roberts commented on the deal’s demise saying,
“After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time.”
“Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”
A press release on the Entain website was equally devoid of details saying, “The Board of Entain plc (“Entain”) notes the announcement made earlier today by DraftKings Inc. (“DraftKings”) that it does not intend to make an offer for Entain. As a result of the announcement, DraftKings and its concert parties are bound by the restrictions
contained in Rule 2.8 of the City Code on Takeovers and Mergers (subject to limited).”
Though DraftKings hinted that the deal may still be alive, there’s still a lot about the current collapse that isn’t known at this time.
Had DraftKings acquired Entain, it likely would have sold off the company’s substantial UK holdings to focus exclusively on using BetMGM to further solidify their footprint in the rapidly growing US sports betting market.