![]() ![]() “MGM owning all of its online business would be a clear long-term positive, in our view, though price would obviously be an important factor.”Īnalysts also noted that BetMGM is the top provider of online casino gaming in the four states where the company operates. “We think it makes more sense for them,” Jonas said. Truist Securities gaming analyst Barry Jonas suggested that MGM Resorts should offer a competing bid for just the 50 percent stake in BetMGM. “It could also lose a partner with whom to share financial risk in a pricey U.S. Grove suggested a DraftKings acquisition of Entain could cause MGM Resorts to lose its use of Entain’s “battle-tested technology” and the company’s experience in operations and marketing. In a presentation to investors in April, BetMGM said it is expected to be operating in 20 states by the end of the year and would produce $1 billion in net revenues by the end of 2022. Grove said Tuesday that an acquisition of Entain by DraftKings could have negative consequences on MGM Resorts, which has viewed BetMGM as one of the company's key growth vehicles. MGM will engage with Entain and DraftKings, as appropriate, to find a solution to the exclusivity arrangements which meets all parties' objectives.” In its statement, MGM Resorts said “having control of the BetMGM joint venture is an important step towards achieving its strategic objectives. In January, MGM Resorts offered $11 billion to acquire Entain, but the bid was rejected by the company for being too low. ![]()
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