MGM Makes Bid for Online Gambling Group Entain: Report
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MGM Resorts International (MGM) - Get Report is betting on buying Entain, a U.K.-based online gambling and sports betting service, according to a report in the Wall Street Journal.
Spokesmen for both Entain and MGM declined to comment on, or confirm, to TheStreet on Sunday the proposal.
The Journal said its report was based on people familiar with the negations, and noted that the terms of the offer by MGM were not known, except that the proposal is likely above the about $17.60 a share MGM had previously offered late last year. The report also noted it's unclear whether Entain would entertain the offer.
The U.S. casino and entertainment giant's bid would include a "substantial stock component," according to the Journal, after the British company rejected an earlier nearly $10 billion offer.
IAC/InterActiveCorp IAC -- MGM's largest shareholder -- supports the deal, according to the Journal's report.
Entain, which trades on the London Stock Exchange as ENT, bills itself as one of the globe's biggest retail online sports betting and gambling groups. It offers sports betting and casino, poker and bingo online games, and operates brands such as Ladbrokes, Coral, BetMGM, bwin, Sportingbet, Eurobet, partypoker, partycasino, Gala and Foxy Bingo. It was incorporated in 2004 in Luxembourg and was re-domiciled to the Isle of Man in 2010 to increase the after-tax dividend return to shareholders.
In December, it was "rebranded" from GVC Holdings to Entain to reflect its "ambition to be the world-leader in sports betting and gaming entertainment," reads the company's website, noting that it's now licensed and operates in over 20 nations.
Entertainment company MGM operates hotels and casinos in the U.S. and Macau.
