DraftKings makes $20 billion offer for UK sports betting company Entain, sources say

Investing

Omar Marques | LightRocket | Getty Images

DraftKings is making a $20 billion offer to acquire U.K. online sports betting company Entain, people familiar with the matter told CNBC’s David Faber on Tuesday.

The offer is largely in DraftKings stock, along with cash, according to the sources.

Entain shares jumped more than 15% in London trading after the news.

On Monday, before news of the deal, the enterprise value of Entain was about 13.2 billion pounds, or $18 billion.

The U.K. gaming company rejected an all-stock offer from MGM Resorts earlier this year worth $11 billion at the time. Entain said the deal significantly undervalued the company.

MGM and Entain maintain an online sports betting partnership in the U.S. called BetMGM.

In a filing with the London Stock Exchange, Entain’s board confirmed that it received a proposal from DraftKings, which would include a combination of stock and cash. The filing did not contain any information on the price of the offer.

“A further announcement will be made as and when appropriate,” Entain noted in the filing. “Shareholders are urged to take no action at this time.”

DraftKings and Entain spokespeople have not returned CNBC’s requests for comment.

Entain’s brands include U.K. poker and gambling companies Coral, Ladbrokes and PartyPoker.

DraftKings went public via a reverse merger with a special-purpose acquisition company in 2020. The online gaming giant operates fantasy sports contests and sports betting.

Enjoyed this article?
For exclusive stock picks, investment ideas and CNBC global livestream
Sign up for CNBC Pro
Start your free trial now

Articles You May Like

I spent $60,000 and 2 years on my MBA. Here are the best lessons you learn in business school
If you’re joining a Medicare Advantage Plan for the first time, here’s what you need to know
A buried building near Jerusalem’s Western Wall is opening to travelers – here’s what it looks like
Second-largest U.S. mortgage lender ditches its plan to accept payments in bitcoin
Sonos (SONO) and Urban Outfitters (URBN) are Aggressive Growth Stocks