Following further analysis and discussions with the Entain board, DraftKings said in a statement that it was no longer considering a formal offer for the European operator. DraftKings had previously discussed a takeover offer worth more than $22 billion in cash and stock.
Entain owns a lot of Europe-centric sports betting and iGaming brands, such as Ladbrokes, Coral and bwin, and a deal would have immediately given DraftKings a global footprint. Entain also owns all of its own back-end tech, a rarity in the gaming world.
“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,” DraftKings CEO and Chairman Jason Robins said in a statement.
The news comes one week after Entain and DraftKings were granted a one-month extension by the U.K.’s Panel on Takeovers and Mergers, making Nov. 16 the new “put up or shut up” date. In September Entain detailed the latest DraftKings proposal, an offer of £2.80 ($3.86) per Entain share, paid in a mix of stock and cash. That represented a 46.2% premium to Entain’s closing share price the day before the announcement.
The deal was especially complicated because of the involvement of a third gaming operator: MGM Resorts. MGM is a 50-50 partner alongside Entain in BetMGM, and has claimed throughout this process that it had the right to approve, or reject, any DraftKings takeover.
At the end of last year, MGM made a roughly $11 billion offer for Entain, which was rejected by the European company for being too low.