MGM Resorts’ latest $11 billion proposal to take over British online gambling company Entain was rejected. A previous $10 billion, all-cash offer was also rejected.
Entain said both offers “significantly undervalued” the company, and requested rationale behind why the two companies should join.
Entain, previously GVC Holdings, is MGM’s partner in its sports betting operation BetMGM. The venture’s mobile app is live in eight U.S. states and plans to be in more than 20 by the end of 2021.
In 2018, GVC acquired betting and gambling company Ladbrokes in a $5 billion deal, making it one of the largest gaming companies in the U.K. It rebranded as Entain in December.
The combination of MGM and Entain’s brick-and-mortar and online presences would make them a unique force in the industry. Online gambling has surged during the coronavirus pandemic with bettors restricted to their homes and many casinos shut down.
U.S. Betting Revenue Through 2020 Q3
- iGaming: $1.07 billion, up 205%
- Sports Betting: $677.8 million, up 27%
- Slots: $13.24 billion, down 38.3%
- Table Games: $3.63 billion, down 42.6%
MGM competitor Caesars Entertainment recently acquired U.K.-based William Hill — which has substantial mobile sports betting market share in the U.S. — for $4 billion.
MGM shares dropped nearly 6% Monday, while Entain’s jumped nearly 30% following news of the initial offer.