So it turns out Entain still has a surprise or two up its sleeve.
When the operator’s search for a new CEO began following the departure of Jette Nygaard-Andersen, there were a number of ‘obvious’ frontrunners.
Star Sports even opened a betting market on who could succeed the Danish executive, with the frontrunners being former Sky Bet CEO Richard Flint, BetMGM CEO Adam Greenblatt and a select few others.
Not many would have had money on Gavin Isaacs, the Australian-born B2B expert who effectively made Light & Wonder what it is today (via a few twists and turns well-documented within gaming history).
As an industry name, he carries serious credence – with over 25 years of experience – most recently being involved with Games Global and, prior to that, being Chairman of SBTech during its high-profile merger with DraftKings.
But, as a leader of a predominantly online operator in today’s dynamic market, Isaacs’ years of experience in retail circles – and mainly in the US – make him a left-field choice.
Given that his prior success came primarily in the retail sector – and with suppliers – the chances of him being brought in to find Entain the optimum buyer seem far likelier
How has the market reacted?
Very early indications, though, are that the market is reacting well to the new CEO’s appointment. Entain stock was up 4.3% at its peak this morning, at the time of writing sitting at £6.66 ($8.61) – up 3.4%.
The fact Entain’s stock is that low, of course, is a sign of the difficulties it has had in recent years, having once surpassed £20 a share.
That came in 2021, when DraftKings submitted a $20bn offer to purchase the operator, one it has perhaps lived to regret turning down.
But there is a reason the market is reacting well to what, on the surface, may seem like a mismatch between a B2B veteran and a dwindling B2C giant.
M&A: An Isaacs speciality
Following Nygaard-Andersen’s departure in December 2023, we asked whether Entain is now a prime M&A target.
And Isaacs’ appointment will do little to dispel that notion. The executive is a specialist in M&A, having overseen several large-scale deals and, at SBTech, being brought in primarily with its DraftKings merger in mind.
In short, if you want to sell your gaming company, there is a short list of names to turn to. One used to be Tony Rodio, who oversaw transitions at the Tropicana and, most notably, Caesars Entertainment as it merged with Eldorado Resorts for £$17.3bn.
Rodio is now retired, of course, but a name of equal stature is that of Isaacs.
Very early indications, though, are that the market is reacting well to the new CEO’s appointment. Entain stock was up 4.3% at its peak this morning, at the time of writing sitting at £6.66 ($8.61) – up 3.4%
If Entain has indeed decided that a high-profile sale is its ultimate destiny – and perhaps the only chance of regaining full shareholder value – Isaacs’ contact book, especially when attracting an American buyer, is perhaps the best way to go.
In it to sell it
Maybe Entain has turned to Isaacs to re-steer the ship and give him the chance to lead a B2C giant back to its former glory. He certainly has the experience and adaptability.
But given that his prior success came primarily in the retail sector – and with suppliers – the chances of him being brought in to find Entain the optimum buyer seem far likelier.
Isaacs will be on a basic salary of £875,000, but with bonus opportunities of 2-4 times that. One would think his main remuneration may come when a deal to sell Entain (either as a whole or some of its main divisions) is complete.
All in all, Isaacs is back in the big time. Will we be saying the same about Entain in the years to come?
