DraftKings gets extension to pursue $22.5B takeover deal

Entain PLC, MGM Resorts International’s associated task spouse successful BetMGM, is giving DraftKings 1 much period to marque its $22.5 cardinal takeover offer formal, the institution announced Tuesday.

Entain said successful a connection Tuesday that the company’s committee has been successful discussions with DraftKings to research the “merits and feasibility” of a imaginable deal. In September, DraftKings made an archetypal banal and currency transportation to get the U.K online sports betting giant, with the connection valued astatine astir $22.5 billion.

DraftKings primitively had until Tuesday to marque a ceremonial connection nether U.K. takeover laws. But Entain requested and received an hold from U.K. regulators, and acceptable 5 p.m. Nov. 16 arsenic the caller “Put Up oregon Shut Up” deadline for the proposal.

The imaginable woody would person important implications for MGM Resorts, which jointly owns BetMGM with Entain successful a 50/50 associated venture. Because of that partnership, MGM has said that it believes immoderate transaction betwixt the Entain and DraftKings would necessitate MGM’s consent.

MGM has been upfront that it wants afloat power of BetMGM and adjacent made its ain propulsion to get Entain earlier this year. That $11 cardinal connection was rejected by Entain, who said said the connection undervalued the company.

“MGM believes that having power of the BetMGM associated task is an important measurement towards achieving its strategical objectives,” the institution said successful a connection successful September successful effect to DraftKings’ archetypal proposal. “MGM volition prosecute with Entain and DraftKings, arsenic appropriate, to find a solution to the exclusivity arrangements which meets each parties’ objectives.”

Contact Colton Lochhead astatine clochhead@reviewjournal.com. Follow @ColtonLochhead connected Twitter.