MGM Makes Offer To Buy British Gaming Company Entain, Report Says

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MGM Resorts International is trying to acquire Entain, the British parent of major online-gambling player Ladbrokes, the Wall Street Journal reports.

The Journal said the cash and stock offer for the company, which is valued at about $9 billion, follows a $10 billion cash-only offer that Lanbrokes rejected.

The Journal said it was unable to determine the exact value of the new offer.

Online gaming already was a growing threat to MGM and other brick-and-mortar casino operators before COVID-19 forced the closing of gambling halls. According to the Journal, the situation has led companies such as MGH that already were seeking to expand their online presences to redouble their efforts.

Share prices of Draft Kings and Penn Gaming, two big players in the U.S. online-gambling market, have soared over the past year, the Journal noted.

Ladbrokes lets online users bet on a wide range of sports, including American football, NBA basketball, baseball, soccer, chess and darts-throwing.

In August, New York-based IAC announced a $1 billion investment in MGM, with executives stating at the time that the potential for growth in the online-gambling space was one reason for doing so.

IAC Chief Executive Joey Levin said at the time, in a prepared statement: “MGM Resorts presents a unique opportunity for IAC to own a meaningful piece of a preeminent brand in a large category with immense potential to move online. We will be a minority investor and a long-term strategic partner, and would welcome the opportunity to contribute to MGM’s success in any way that MGM’s Board would look favorably on our involvement.”

IAC is publicly traded and has owned, at times, brands including, The Daily Beast and Vimeo.

Source: PYMNTS

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