Ladbrokes owner Entain's shares soar on $22bn DraftKings takeover bid
Sports betting giant DraftKings (DKNG) has made a £16.6bn ($22.6bn) cash and stock approach for its UK rival Entain (ENT.L) the second bid for the betting company this year.
Earlier in 2021, FTSE-listed Entain rejected an all-stock offer from MGM Resorts in a deal that would have been worth $11bn.
The company, which owns Ladbrokes and Coral, could jeopardise a joint-venture with MGM, called BetMGM, to offer sports betting in the US if the bid by DraftKings is accepted.
Entain stock jumped 17.6% in afternoon trade in London, increasing the share price by 327.5p to trade at 2,245p.
Meanwhile, DraftKings stock told a different story, slumping 6.8% in morning trade in the US.
The deal was confirmed in a filing to the London Stock exchange, however the document didn't contain details of the proposed offer.
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“A further announcement will be made as and when appropriate,” Entain siaid. “Shareholders are urged to take no action at this time."
DraftKings has been riding a pandemic gambling boom over the last year and a half. Its listing via a SPAC deal in April 2020 has seen its market value rise more than sixfold from its $3.3bn valuation since.
Watch: What are SPACs?
