DraftKings has issued a statement disclosing its refusal to make a firm offer on Entain following discussions with the company’s board of directors.
After further analysis and talks between both business’ senior leadership, DraftKings has declined to broach a firm acquisition offer, joining MGM Resorts in inviting Entain to the party, but refusing to dance.
Jason Robins, DraftKings’ CEO, Co-founder and Chairman, commented on his company’s decision, saying: “After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time.
“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.”
The deadline came and went on Tuesday 19 October for DraftKings’ to make a formal offer for the UK-based Entain Group after the American sports betting brand reportedly floated a $22.4bn buy-out offer in September.
One week later and DraftKings published this statement detailing its refusal to lodge a formal offer to acquire Entain.
As a result, the company is now unable to make any further offers for six months following the date of this announcement, excepting certain circumstances which include the agreement of Entain’s board of directors, an offer from a third party or the announcement by Entain of a “whitewash” proposal or reverse takeover.
In addition, DraftKings’ withdrawal marks the second time this year that Entain has almost been acquired, following a similar move by MGM Resorts International in January when it decided against submitting a revised offer for the British gambling firm.