In an announcement made "without DraftKings' consent," operator Entain has labelled this move an "extension of the Put Up or Shut Up Deadline."
Under the terms of the previous proposal, DraftKings would offer £28 ($38.65) per Entain share, consisting of cash and DraftKings shares.
However, following discussions with DraftKings, the deadline for an official offer has been extended. The original deadline was today (19 October 2021).
A statement read: "The Board has been in discussions with DraftKings in order to explore the merits and feasibility of a potential transaction reserving its position on the appropriateness of the value of the Proposal. As part of this, the Board will require a number of matters to be satisfactorily resolved that are fundamental to the structure and value of the Proposal including but not limited to:
- Total value creation for Entain shareholders, including share of potential synergies
- Terms for any proposed technology supply agreement to BetMGM and MGM
- Governance rights and value protection for the combined entity’s stake in BetMGM
- Governance and management composition of the pro forma DraftKings / Entain entity
- Deliverability of the potential transaction, including anti-trust and regulatory clearances"
A further announcement will be made in due course, with Entain's board stating its confidence in delivering "material value" for its shareholders going forward.
It did state, however, that there still remains no certainty a firm offer will be made at any point.
DraftKings later responded with a statement of its own: "DraftKings will continue to engage in discussions between both companies and to conduct more substantive due diligence and analysis regarding its possible offer.
"DraftKings looks forward to exploring potential benefits that could derive from this possible combination for its and Entain’s shareholders, including:
- Expansion into regulated and regulating markets
- Accelerated product growth
- Innovation in new and existing verticals
"DraftKings further notes that while it progresses its discussions with Entain, it also continues to remain very focused on opportunities in the high growth North America market.
"This announcement does not constitute an announcement of a firm intention to make an offer under Rule 2.7 of the Code. There can be no certainty that an offer will be made nor as to the terms on which any offer will be made. A further announcement will be made as and when appropriate."
