Billionaire Barry Diller’s InterActiveCorp, the largest shareholder in MGM Resorts International, supports the casino operator’s $11 billion takeover approach for Ladbrokes owner Entain Plc, the U.S. company said on Friday.
MGM said a proposed merger with the British bookmaker would be “compelling” and believes a deal, amongst other things, would help grow BetMGM, its online sports betting operating in the United States.
Online betting firms have benefited during the COVID-19 pandemic-led lockdowns, as customers took to playing from home when casinos and betting shops were off-limits.
Entain, however, rejected the takeover advance earlier this week, saying it significantly undervalued the company and asked MGM for more information on the strategic rationale for a merger.
Meanwhile, on Thursday, Entain offered to buy smaller rival, Swedish sports betting firm Enlabs AB for about $343 million.
Shares of London-listed Entain were marginally down 0.1% at 1465 pence on Friday at 0339GMT.
Source: Reuters.com