Draftkings has said it will not be making a final bid to purchase Entain causing the ladbrokes owner’s share price to shed 7 per cent.
Draftkings had offered 2,800 pence a share in cash and stock for Entain back in September, a $22.4bn offer which represented a 43 per cent premium over the company’s stock price and improved on an earlier 2,500 pence bid.
However, the companies reportedly struggled to agree over the governance structure for BetMGM, the joint venture between Entain and MGM.
Jason Robins DraftKings CEO, Co-Founder and Chairman of the Board today said “after several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time.
“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,” the statement added.