DraftKings expresses interest in acquiring Entain

Draft Kings? entain? Two names that are not known to everyone in Germany. But just Entain should be known to gambling fans. The company was formerly known as GVC Holdings. More specifically, bookmakers like Bwin and Sportingbet, as well as casino sites like Partypoker and Casino Club belong to the portfolio. DraftKings, on the other hand, has made a name for itself with Daily Fantasy Football. The company gains a foothold in America and grew even bigger by allowing sports betting in the United States. And now the US group wants to take over DraftKings Entain.

By the way, it is by no means a rumor that DraftKings is interested in the takeover . Rather, it is currently not known how Entain stands on this. Because the British group has not yet commented. We also have little knowledge of what the concrete offer looks like. However, Entain recently confirmed in Douglas that an acquisition bid had been received. However, it is unknown whether DraftKings is just checking out its options or whether there is actually already a formal bid on the table. At least CNBC from an offer in the amount of 20 billion US dollars, which corresponds to over 17 billion euros. Payment is to be made partly in cash and partly in shares.

Here's how the share prices of Entain and DraftKings performed

For many years, the shares of Entain - then still GVC - rippled along like this. Seven to ten euros were the standard. But after the renaming and in the wake of the Corona crisis, things went up on the markets . Gambling was in high demand during the pandemic. Even before the possible takeover by DraftKings became known, the short had gradually risen to over 20 euros. With the confirmation of a possible sale, the market value has risen . Entain is currently 28.80 euros. Depending on how the negotiation ends, the short could continue to rise. However, it is also possible that the security will fall again. This would likely be the case should DraftKings' acquisition of Entain fall through.

Perhaps we should also mention that a newcomer wants to swallow the old hand here. Because DraftKings has only been active on the stock exchange since the end of 2020.But the volume was already 40.60 euros at the start. The previous peak value in March was EUR 61.00. However, DraftKings could not keep up there. It went down and up again - as is not unusual on the stock exchange. Since the US company is weakening its own value with the purchase of Entain - because it is an investment to make, a slide in the price is quite normal. And so the value fell from just over 50 euros to 45.62 euros. But an investment is always about the future. Through Entain, DraftKings would have access to the European market. Because the company is active, for example, in Great Britain (Ladbrokes/Coral) and in Germany (Bwin and Sportingbet).

587 million shares of Entain : That's how many securities are currently outstanding. The offer is said to be worth $20 billion, which would mean each share would be worth 2,500 pence on the London Stock Exchange. Entain has almost reached this value on the stock exchange.

What would DraftKings gain from the Entain acquisition?

Entain is a gambling giant in Europe. DraftKings can also be reached from Germany, for example. But we can currently only set up one fantasy football team there. Or this is now also the case with football, baseball, golf, UFC, hockey, tennis and many other sports. DraftKings has steadily expanded its own range over the past few years. Now sports betting is legal in America. Of course, DraftKings is not going to miss out on this market. This is where Entain comes into play. Because the British group has a wealth of experience here and certainly also has technical know-how.Nevertheless, an Entain takeover could be the perfect entry into the European market for DraftKings. Because in Europe king football is dominant. DraftKings had provisionally made a name for itself in the United States through football.

However, it's probably not just sports betting that DraftKings finds appealing. Because Entain owns a huge portfolio. At the beginning we mentioned a few names. We would be happy to complete the list. The following providers are under the auspices of Entain: Bitstarz, Betboo, BetMGM, Bwin, Gamebookers, Ladbrokes & Coral, Neds, Sportingbet, Partypoker, Partycasino, Casino Club, Gioco Digitale, Cashcade, Foxy Bingo and Foxy Games. Some names might suggest it. Not only Germany and Great Britain are covered to a certain extent. Neds, for example, is targeting the Australian sports betting market. Gioco Digitale is active in Italy. If DraftKings acquires Entain, they will have access to these brands. The only question that remains is whether Entain will go along with the US gaming group's deal or whether the British will play poker.

Other gaming stocks moving : DraftKings' takeover bid for Entain has also boosted other stocks. Flutter rose four percent after it became known. The 888 Holdings even increased by six percent. After all, it's possible that the deal with Entain won't go through and DraftKings are looking for a new target.