- Betting company was recently granted an extension to complete agreement
- DraftKings now unable to submit fresh takeover bid for six months
DraftKings has walked away from its US$22.6 billion pursuit of UK-based Entain, the US betting and fantasy sports company has confirmed.
After recently extending its negotiating period to secure the acquisition, DraftKings has now become the second US company to walk away from a deal with Entain, after MGM’s US$11 billion bid was turned down in January.
Due to British legislation, the gambling company DraftKings is now unable to submit an additional bid for Entain – which owns numerous betting brands, including Ladbrokes, Coral and Bwin – for at least six months.
Entain revealed the initial proposal from DraftKings in September, with the US betting company offering US$3.86 per share to be paid in both stock and cash.
The DraftKings deal was said to be complicated by MGM Resorts and Entain’s co-ownership of the Bet MGM.
“After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time,” said Jason Robins, the chief executive of DraftKings, who is also its co-founder and chairman of the board.
“Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”