DAVY VIEW

There are two likely options available to Entain shareholders — accept an imminent MGM bid or ‘go it alone’. Shareholders must therefore decide whether any MGM bid offers superior prospects to the group’s stand-alone prospects. This is the important context for the CEO’s surprise departure — what, if anything, does it indicate about the group’s stand-alone prospects? We believe there is strong imperative for MGM to acquire Entain. In our view, it must address the ownership structure of its US online channel, while also putting in place the platform to address the ever-expanding global opportunity. Ultimately, we expect this to be the primary driver of the deal, which we can still envisage being successfully reached.