DraftKings has backed out of its intention to acquire Entain, a deal that would have been worth around $22.4 billion, the U.S.-based sportsbook operator announced Tuesday.
Entain, along with MGM Resorts International, owns BetMGM. A DraftKings acquisition of the company would have shaken up the U.S. sports betting industry.
Entain had asked the regulatory body that oversees mergers in the U.K. to extend from October 19 to November 16 the deadline for DraftKings to firm up its offer. The two parties could not reach agreement on technology licensing and governance of BetMGM.
DraftKings’ bid represented a 43% premium over Entain’s stock price at the time of the initial offer.
MGM Resorts made an $11 billion bid for Entain earlier this year, before deciding against increasing its offer.
Entain also owns British betting brands Ladbrokes and Coral.
Per U.K. law, DraftKings now has to wait six more months if it wants to revive its bid for Entain.
DraftKings Vs. MGM Resorts
The prospective deal would have put together two of the U.S. sports betting industry’s biggest players.
MGM Resorts wanted its voice heard in the merger talks, which DraftKings was reluctant to allow.
“After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time,” DraftKings CEO and Chairman Jason Robins said in a statement. “Based on our vertically-integrated technology stack, best-in-class product and technology capabilities and leading brand, we are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market.”
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