MGM Deal For LeoVegas to Trigger DraftKings Bid For Entain?
Mergers and acquisitions in 2022 seem to be increasing like every other year with the recent announcement that MGM Resorts has tabled an offer for European online gambling operator LeoVegas worth more than $600 million and it is understood founder and major shareholder Gustaf Hagman is recommending the deal to shareholders to accept.
It is no surprise MGM have jumped in again for a leading online gambling business, it recently tried to acquire online gambling giant Entain which it has a partnership in BetMGM for £8 billion in early 2021, however that deal failed as Entain believed the offer seriously undervalued the company.
The DraftKings made a play for Entain tabling a much larger £16 billion offer for Entain, this was seriously considered by the UK base firm but ultimately failed because of the MGM Resorts tie-up with Entain into its sportsbook business in the US. No deal was resolved for DraftKings and MGM in releasing that deal or allowing it to continue while DraftKings became the new owner.
However with the potential acquisition of LeoVegas by MGM could this trigger a renewed deal for DraftKings and Entain? Is it feasible that MGM will propel LeoVegas into the US as its new sports betting partner and sell off BetMGM along with Entain being acquired by DraftKings?
Generally one deal follows or is triggered by another deal such was the same for Caesars purchase of William Hill or its US assets and then sold the remainder (shareholder approval pending) to 888 Holdings.
Certainly Entain can see the huge potential to grow rapidly in the US with DraftKings and the offer of £16 billion would be in the right region, not only that but now with MGM Resorts finding a potential new partner in LeoVegas will we see another offer for Entain triggered if LeoVegas agree the acquisition?
