MGM has said it will not make a firm offer to buy UK games company Entain, two weeks after its £ 8 billion takeover bid was rejected by the UK’s board of directors. target.
“After careful consideration and after reflecting on the recent limited engagement between the respective companies regarding MGM, all proposed actions were rejected. . .[MGM]does not intend to submit a revised proposal, ”the company said on Tuesday.
The share price of Entain, which owns the Ladbrokes and Coral chains in the UK, fell sharply on the news and fell 16 percent in midday trading in London.
MGM’s initial proposal, which followed several openings in November, was rejected by Entain’s board, which argued it had “significantly undervalued” the company.
The news also follows the shocking departure of Entain’s CEO last week.
The two companies are together running a 50/50 joint venture in the United States to tap the burgeoning online sports betting and gaming market, which analysts say could grow to $ 20 billion in annual revenue or more by 2025.
Barry Diller, whose holding company IAC is MGM’s largest shareholder, told the Financial Times in an interview this month that he was “skeptical” about the possibility of a deal, but that MGM would be “in” ‘leading position in online gambling. market.
MGM said in Tuesday’s statement that it remains “committed to being a leading global omnichannel games and entertainment company, and that it will maintain a disciplined framework while evaluating a range of compelling strategic opportunities.”