The US casino group said in a statement on Tuesday that it would not make a firm offer for Ladbrokes owner Entain, following ‘careful consideration’ and ‘limited recent involvement’.
Shares in Entain rose 25% after the MGM offer was announced, indicating that investors believe a higher offer would come from MGM or another competitor. Following the announcement on Tuesday, Entain’s share in London fell by 15%. MGM’s shares rose 2.6%.
MGM, a major player in Las Vegas, said it remains committed to BetMGM, its existing joint venture with Entain. BetMGM, a sports betting and online gaming company, operates in more than a dozen US states.
“We remain committed to working with Entain to ensure that its strong momentum continues as it will operate in 20 states by 2021,” MGM CEO Bill Hornbuckle said in a statement.
Entain reflects the sentiment in a regulatory file as he awards his credentials.
“Entain has a clear strategy for growth and sustainability, backed by cutting-edge technology, that it is confident will deliver significant value to stakeholders,” the company said.
The next steps of the British company will involve the hunt for new leadership, with CEO Shay Segev later this year. The announcement that he would leave Entain to lead a sports streaming platform was made a few days after the MGM bid was rejected.