DraftKings has made a $20bn offer to acquire Entain, a bid that almost doubles that made by MGM earlier this year, which was rejected by shareholders.
Harry Barnick, senior analyst at Third Bridge, said: “Entain is an attractive asset based on its experience in online gambling, where it is European leader in sports betting and online casino. Draftkings' audacious bid indicates its willingness to go head to head with Flutter-owned FanDuel.
“As shareholders mull over the deal, three key questions remain. What will happen to the MGM partnership under DraftKings' ownership? Could we see a counter offer lead to a bidding war?
"Then with the wave of consolidation we are seeing in the market, including 888’s recent acquisition of William Hill’s international assets, investors will simply be wondering: which company could be targeted next next?“
