Gaming

DraftKings/Entain ‘put up or shut up’ deadline extended

  • Sectors : Gaming
  • Companies : Flutter Entertainment | DraftKings | Entain

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
DraftKings NEUTRAL 23/03/21 N/A N/A 4829c
Entain NEUTRAL 13/12/17 N/A N/A 2157p
Flutter Entertainment OUTPERFORM 08/05/19 Neutral 29/08/17 14315p

DAVY VIEW

The extension of the ‘put up or shut up’ deadline suggests that, at a proposed bid of £28 per Entain share, there is continued interest on the part of both Entain and DraftKings in exploring a business combination. However, the statement also confirms that several issues have yet to be resolved. These include total value creation for Entain shareholders (presumably determined by the final structure/value of deal), alongside matters relating to the future governance and commercial status of BetMGM (determining the value of Entain’s current 50% stake in the joint venture to the pro forma group). As was already understood, satisfactory resolution of these issues will be required for any combination to be successfully completed.

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Oct 19 2021, 17:20 IST/BST

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