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Entain shares slide as DraftKings walks away

Entain shares tumbled on Tuesday after US-based DraftKings said it will not be making a firm offer for the London-listed gambling group.
“DraftKings confirms that, following further analysis and discussions with the Entain board of directors, it will not make a firm offer for Entain,” it said.

In September, DraftKings offered 2,800p a share in cash and stock for Entain, which owns Ladbrokes and Coral.

Chief executive officer and co-founder Jason Robins said: “After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time.”

Entain said in a statement that it “strongly” believes in its future prospects, “underpinned by its leading market positions, world class management team and industry-leading proprietary technology”.

The company said it had an “outstanding” track record of growth, having delivered 23 consecutive quarters of double-digit online net gaming revenue growth, representing a three-year compound annual growth rate of 19% across 2021.

“Entain’s management remains focused on executing its growth and sustainability strategy and on delivering the opportunities laid out in Entain’s capital markets event on 12 August to treble its total addressable market to circa 160bn,” it said.

These opportunities include further growth in existing markets and expansion into new regulated markets, among other things.

At 1335 BST, the shares were down 7.3% at 1,980.20p.

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