US-based casino company MGM Resorts has decided against making a bid for the entire UK group Entain, as pressure from activist investors on Entain's CEO, Jette Nygaard-Andersen, continues to persist. Last week, reports from the Financial Times revealed that shareholders were opposing Nygaard-Andersen. Sources close to MGM have confirmed that the company has no interest in bidding for the entire UK group.
Instead, MGM plans to acquire the remaining 50% stake of the BetMGM joint venture currently held by Entain, once the UK group is sold. Bad blood between the two parties has been brewing since Nygaard-Andersen took over as CEO in January 2021, following Shay Segev's unexpected move to DAZN. During this time, Entain was in talks with MGM regarding a potential sale.
Although a deal with MGM didn't materialize at that time, it doesn't rule out the possibility of another offer from the US company, but specifically for the 50% stake in the BetMGM joint venture. Several issues have strained the relationship between the two companies, including the failed bid by MGM and the ongoing ownership dispute over BetMGM.
Instead, MGM plans to acquire the remaining 50% stake of the BetMGM joint venture currently held by Entain, once the UK group is sold. Bad blood between the two parties has been brewing since Nygaard-Andersen took over as CEO in January 2021, following Shay Segev's unexpected move to DAZN. During this time, Entain was in talks with MGM regarding a potential sale.
Although a deal with MGM didn't materialize at that time, it doesn't rule out the possibility of another offer from the US company, but specifically for the 50% stake in the BetMGM joint venture. Several issues have strained the relationship between the two companies, including the failed bid by MGM and the ongoing ownership dispute over BetMGM.
