Share of the Week: Betting enterprise Entain is approached for US takeover

Share of the Week: Betting enterprise Entain is approached for US takeover

ENTAIN would make its revenue from gambling – but now it is the company’s board who are remaining requested to consider a punt on a £16bn takeover offer.

The betting giant – which owns the Ladbrokes and Coral models, as nicely as a swathe of on the internet game titles names these as Gala Bingo – discovered previous thirty day period that it had been given two methods from US rival Draftkings, the latter pricing Entain’s shares at 2800p apiece.

Shareholders will be watching Entain’s newest trading update on Tuesday for any indication of what the business ideas to do. It rejected Draftkings’ preliminary 2500p supply, and in its most up-to-date announcement in September said it was ‘carefully considering’ the larger bid.

But Entain has however to present its hand, with the board simply just indicating that it ‘strongly thinks in the future prospective buyers of the company’. When the business releases its third-quarter update subsequent week, shareholders will be looking at intently to see if these potential customers are coming to fruition.

Nicholas Hyett, an equity analyst at Hargreaves Lansdown, stated: ‘Signs of strong development will be welcome and may well persuade administration to switch down the provide on the grounds that it undervalues the small business. The US joint enterprise with MGM in distinct will be in the highlight, because it’s likely the gem that at first interested Draftkings in the enterprise. The division claimed web gaming revenues of $357m in the initial six months of the year and, all currently being effectively, really should do even greater in the second half.’

Meanwhile, Entain has not resolved irrespective of whether to hand back furlough cash it claimed throughout the pandemic.