MGM Adds Another Billion To Their Offer In Entain Buyout Attempt

  • MGM Resorts has added $1 billion more to their declined $11.1 billion offer last week to buy out Entain.
  • The two companies own BetMGM Sportsbook which is the reason MGM Resorts is trying to acquire Entain.
  • IAC, the biggest stakeholder for MGM Resorts, is putting up the added $1 billion to help the company try and purchase Entain.

NEW YORK – Last week, MGM Resorts’ offer of $11.1 billion to purchase Entain was declined, leading the company to add another billion to that figure this week in the hopes that it will sway Entain to sell to them.

MGM Resorts and Entain are the parent businesses of BetMGM which is one of the reasons that the UK-based company declined last week’s price tag of $11.1 billion as it was believed to be too low a number considering how the growth of sports betting in the United States is expected to continue nationwide.

This will be the third attempt by MGM Resorts to buyout Entain.

Will The Added Billion Sweeten The Deal?

IAC, the biggest shareholder of MGM with a 12% stake in the company, has decided to put up the extra billion to make this acquisition a reality. As it stands, the $11.1 billion would’ve profited Entain with a 22% boost in their share prices which were worth $18.73 apiece at the time of the offer.

While IAC will help to add more cash within their billion-dollar raise to the bid for Entain, most of the money will be in stock but the idea is to better MGM’s chances of getting Entain as their own. This would be by whatever means that entails, be it a mixture of cash and stock or the like.

MGM Resorts and IAC see this purchase as a natural extension in the path to expand upon the sports betting presence of BetMGM in the United States. BetMGM is already one of the top mobile sportsbook applications in the country where legal industries allow for platform access.

MGM believes the gaming aspects from all viewpoints will be combined and make for a better, more streamlined way of running the sports betting part of their business and any other gaming addons in the future.

There is also the probability for extreme growth and profits in the United States having BetMGM under the direction of one parent company rather than two when making decisions.

However, that last point is what is making this acquisition a difficult one. Entain is fully aware of the growth potential and profits that the future of BetMGM could bring which is why they do not want to sell now at this price and later learn they’ve been bilked out of substantial monetary gains should the market surge considerably.

The Time Is Now

The time for MGM Resorts to purchase Entain is now, if at all. It’s a deal that will require plenty of finesse because if Entain decides not to sell, MGM is stilled partnered with them regarding BetMGM and no one wants to cause a rift for the partnership moving forward.

Negotiations are expected to continue as shares for Entain are now up to $19.82 each which means stockholders expect at least one more try by MGM Resorts to buyout Entain.

The ball is in Entain’s court for how this entire situation plays out. They may decline again because the American legal sports betting industry is too lucrative and is expected to keep growing.

News tags: BetMGM | Entain | IAC | MGM Resorts | Online Sports Betting

Christina Monroe

Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.

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