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The US casino group said in a statement Tuesday that it would not make a firm offer for Ladbrokes owner Entain after “careful consideration” and “limited recent engagement.”
Entain shares jumped 25% after the disclosure of MGM’s offer, indicating that investors believed a higher offer was from MGM or another competitor. Following Tuesday’s announcement, Entain’s share plunged 15% in London. MGM shares rose 2.6%.
MGM, a major player in Las Vegas, said it remains attached to BetMGM, its existing joint venture with Entain. BetMGM, an online sports betting and gaming company, operates in more than a dozen US states.
“We remain committed to working with Entain to ensure that its strong momentum continues, as it plans to be operational in 20 states by the end of 2021,” MGM CEO Bill Hornbuckle said in a statement. .
Entain echoed this sentiment in a regulatory dossier while touting its credentials.
“Entain has a clear strategy of growth and sustainable development, supported by cutting-edge technology, which it believes will bring significant value to stakeholders,” the company said.
The next steps for the British company will have to involve finding new leaders, with CEO Shay Segev stepping down later this year. The announcement that he would be leaving Entain to run a sports streaming platform came just days after MGM’s offer was rejected.
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