DraftKings Makes $20B Offer to Acquire Entain

DraftKings made a $20 billion cash-and-stock offer on Tuesday to acquire U.K. online sports betting company Entain, according to CNBC. 

On Monday, Entain had an enterprise value of roughly $18 billion. The company owns major betting brands like Ladbrokes, PartyPoker, Coral, and BetMGM.

Entain rejected an $11 billion all-stock offer from its BetMGM partner, MGM Resorts, in January, saying it undervalued the company.

Since going public via a reverse merger with blank-check company Diamond Eagle Acquisition Corp. in 2020, DraftKings has been busy expanding its offerings and reach.

• The company purchased sports betting media network VSiN for $70 million in March.
• The same month, it agreed to a five-year partnership with UFC in a deal worth more than $100 million.
• The company inked a $50 million deal in April with Meadowlark Media for Dan Le Batard’s radio show and podcast network.
• It announced a deal in August with Genius Sports to access Genius’ data and sports betting products.
• Also in August, it agreed to acquire Golden Nugget Online Gaming in an all-stock deal valued at roughly $1.56 billion.

DraftKings generated $298 million in revenue in Q2 2021 — a 297% increase year-over-year — but still took a net loss of $305.5 million during the quarter due to the hefty cost of operations, acquisitions, and marketing.