Fantasy sports betting firm DraftKings (DKNG) has bid to acquire U.K.-based online sports betting company Entain for $20 billion, CNBC said in a report. Before the announcement of the news, Entain's enterprise value was around $18 billion.

Massachusetts-based DraftKings enables users to play weekly and daily fantasy sports-related contests and win money on the basis of individual player performances in five major sports – tennis, mixed martial arts, Canadian Football League, NASCAR auto racing, the XFL and Premier League, and UEFA Champions League soccer.

DraftKings’ shares declined 7.4% on Tuesday. It lost another 0.6% in extended trade to finally close at $52.45. (See DraftKings stock chart on TipRanks)

Listed on the London Stock Exchange, Entain is an international sports betting and gambling firm that owns brands like Sportingbet, PartyPoker, Ladbrokes, Coral and bwin. The company’s board has confirmed DraftKings' proposal, which would include both stock and cash.

Notably, Entain has an online sports betting partnership with MGM Resorts (MGM) in the U.S. called BetMGM. As per the agreement, MGM needs to approve any deal involving Entain’s U.S. assets.

Entain said, “MGM will engage with Entain and DraftKings, as appropriate, to find a solution to the exclusivity arrangements which meets all parties’ objectives.”

Recently, Loop Capital Markets analyst Daniel Adam reiterated a Buy rating on DraftKings with a price target of $105 (99% upside potential).

In a research note to investors, the analyst said, “The company continues to gain market share and has recently overtaken FanDuel as the top U.S. sportsbook app, according to the latest rankings on Apple's App Store.”

Overall, the stock has a Strong Buy consensus rating based on 12 Buys and 4 Holds. The average DraftKings price target of $72.43 implies 37.3% upside potential. Shares of the company have lost 26.4% over the past six months.

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The post DraftKings Bids to Acquire Entain for $20B – Report appeared first on TipRanks Financial Blog.

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By: Richika Biyani
Title: DraftKings Bids to Acquire Entain for $20B – Report
Sourced From: blog.tipranks.com/draftkings-bids-to-acquire-entain-for-20b-report/
Published Date: Wed, 22 Sep 2021 09:28:09 +0000

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