The Las Vegas gaming titan, MGM Resorts International, has publicly confirmed receiving a proposal to purchase Entain, a company previously known as GVC Holdings, which specializes in online gambling. However, they have stressed that they are unable to decide at this time if they will submit a formal proposal.
MGM has confirmed the merger proposal from Entain but is unsure if they will make a formal offer.
As Entain announced earlier today, MGM Resorts has made a proposal to acquire the operator, offering 0.6 shares of MGM stock for each share of Entain stock. This would value the Ladbrokes and PartyGaming operator at roughly $11 billion (£81.1 billion/€89.7 billion).
Under the agreement, Entain stakeholders would possess 41.5% of the combined MGM.
For Entain stakeholders who do not wish to receive stock compensation, a cash alternative may be offered. MGM’s biggest stakeholder, IAC, has indicated they may assist in financing the deal.
After Entain informed MGM that they believed the offer significantly undervalued the online operator, MGM also explained why they believe the deal is a favorable decision for Entain.
They stated that the deal would enable the combined entity to fully leverage the expanding US market through complete control of the BetMGM joint venture.
MGM International is planning to utilize its assets to become a leading force in both online and traditional gambling globally. They also aim to expand into other sectors and prepare for future expansion.
MGM International must submit a substantial proposal by February 1st or decline. It remains uncertain whether they have already submitted a proposal.
Entain, previously known as GVC, has a new leader, Shay Segev. They assert that the new name better reflects their revised strategy, which emphasizes legal gambling and environmental responsibility.
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