Will MGM Resorts Attempt to Acquire Entain Again?
A few years ago, MGM Resorts International attempted to acquire Entain Plc, but the bid was rejected. Now, an industry analyst has suggested that the company may once again consider pursuing the deal.
Sign of MGM on building rooftop. MGM Resorts may revisit bid for Entain or BetMGM stake
LISTEN TO THIS ARTICLE:Revisiting the BetMGM Stake Acquisition
The hospitality and gaming giant currently shares 50% ownership of BetMGM, a prominent US betting and gaming brand, with Entain. MGM Resorts last attempted to acquire Entain in 2021, offering $11.06 billion. Entain rejected the proposal and called it inadequate. Since then, speculation about MGM’s interest in either buying Entain outright or securing full ownership of BetMGM has continued, but no formal discussions have taken place.
Chad Beynon, an analyst with Macquarie, recently suggested MGM might reexamine its options. Beynon said that BetMGM has established itself as “the number three US Online Gaming operator, occupying the leading position among the ‘Tier 2’ companies.” He pointed out key features of BetMGM, including its single-app wallet launch in Nevada and projected profitability in 2025.
Beynon explained that MGM acquiring the remaining 50% stake in BetMGM from Entain could be a logical move, especially given the brand’s strong market position and improving financial outlook. He also pointed out that such a transaction could benefit Entain, as some investors have previously encouraged the company to raise funds by selling assets. This potential deal might, therefore, be a mutually advantageous opportunity.
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Considering a Full Bid for Entain
Another possibility for MGM Resorts International could be a renewed bid to acquire Entain outright.
While the company attempted to acquire its joint venture partner in Entain in 2021, we believe the likelihood could increase given the management transition, current share price (Entain shares are -36% over the last year, market cap of ~$4.8 billion), and potential synergies.
While a full acquisition of Entain is an option, Beynon suggested that MGM might find it more financially viable to focus solely on acquiring Entain’s 50% stake in BetMGM. Nonetheless, despite ongoing speculation, neither MGM Resorts nor Entain has publicly announced any discussions over mergers or asset divestments.
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