The Whopping Bid of $20bn!

09 Nov. 2021

Massive changes are coming around for the world of gambling and if you enjoy a game once in a while, the following is going to come up as a piece of great news. Few big companies in the arena are looking to take up the ultimate crown and make all kinds of efforts to reach their heights. In between all of these, DraftKings, which is a US-based gambling company, has made a whopping bid of $20bn for Entain. Entain is based in the United Kingdom and is one of the biggest gambling companies in Europe.

Look at all the zeroes

According to Rowdie, the huge bid is not only significant for the immense number of zeroes but has quite a lot of added perks. One has to realize that the amount is significantly above the standard premium values. The bid is about 30% above premium rates or that it ensures about $34.16 for every single share. Even Entain is a giant in its arena that can be verified from the fact that such huge brands as Coral, Ladbrokes, and PratyBroker all come under the Entain banner.

This humongous bid is terrific news and is likely to send shockwaves throughout the entire industry. It can already be seen in the daily workings of the involved companies. For example, the stock value of DraftKings has already plummeted by 5% and that of Entain has increased by a huge 17%.

Though this is going to be a tremendously big deal, there has been no word from any representative from either of the two companies. When asked about the $20bn offer from DraftKings, it was confirmed by Entain, though no other details were released. They have also confirmed that the deal, if struck, would be paid using a combination of cash and stocks. However, no specifications about the deal or how it is going to be conducted are yet released. The participating companies say that they would make a big reveal soon enough at an appropriate time.

Not the first cooperation between MGM and Entain

If you are keen on the proceedings in the gambling world, you would know that this is not the first time that such an offer has been made. Some time ago, MGM Resorts had made a very similar bid to Entain, though, for a much smaller amount. They wished to take over Entain for $11bn and this offer was almost immediately rejected by Entain. Entain stated that the offer was way below the expected amount and thus there is not even any space for considering the offer.

On the other hand, MGM and Entain are already partners through BetMGM. They joined hands to form a big gambling agglomerate in the US and give them an iGaming collaboration. Thus, whatever happens in the $20bn deal between Entain and DraftKings, MGM is sure to have a say in the whole matter!