MGM Resorts drops plans to acquire Entain19th January 2021 1:37 pm GMT
US gaming operator MGM Resorts International confirmed Tuesday that it does not intend to make a firm offer to acquire London-listed operator Entain (formerly GVC Holdings).
The decision follows Entain's rejection of an £8.1bn acquisition offer from its US partner MGM Resorts earlier this month, which it described as significantly undervalued.
MGM Resorts had until 1 February to announce a firm intention to make an offer for Entain. However, the company said Tuesday that after careful consideration and having reflected on the limited recent engagement between the respective companies, it does not intend to submit a revised proposal and will not make a firm offer for Entain.
“BetMGM, our US sports betting and online gaming venture with Entain, remains a key priority for the company as we continue to leverage our preeminent physical gaming, entertainment, and hospitality platform to expand digitally,” said MGM Resorts CEO Bill Hornbuckle.
“We believe that BetMGM has established itself as a top three leader in its markets and we remain committed to working with Entain to ensure its strong momentum continues as it expects to be operational in 20 states by the end of 2021.”
MGM Resorts added that it remains committed to becoming a leading global omni-channel gaming and entertainment company, and will “maintain a disciplined framework while evaluating a range of compelling strategic opportunities.”
Meanwhile, Entain continues its search for a new chief executive after incumbent Shay Segev announced he would be leaving the company to join streaming platform DAZN.
Shares in Entain plc (LSE:ENT) fell by 15.22 per cent to 1,198.39 pence per share in London Tuesday following the announcement, while shares in MGM Resorts International (NSQ:MGM) were 6.07 per cent higher in pre-market trading at $31.61 per share in New York.