MGM Resort sees potential Entain acquisition. MGM Resorts has proposed an offer that could potentially see it acquiring Entain through a stock offer in a deal worth over US$12.9 billion.
Although Entain rejected an initial offer, MGM disclosed Friday that it has now received the official backing of one of its major shareholders to continue pursuing the deal.
According to MGM, IAC – which acquired a 12% interest in MGM last August via a series of transactions amounting to over US$1 billion – has sent a non-binding letter of intent supporting the move and demonstrating that it is willing to consider funding a portion of a partial cash alternative if the option was made available to Entain shareholders.
MGM shared that this would be made “through a further investment in MGM due to IAC’s confidence in MGM and its prospects,”
“IAC further indicated in its non-binding letter of intent that it is IAC’s current intention that IAC’s additional investment into MGM for these purposes could be up to US$1 billion. The terms and amount of such investment would require the mutual agreement of IAC and MGM.
“IAC has to date invested approximately US$1 billion in MGM with an initial investment thesis of accelerating MGM’s penetration of the $450 billion global gaming market. IAC notes in its letter of intent that IAC continues to strongly support this objective for MGM whether or not a transaction with Entain is consummated.”
IAC has allegedly stated its belief that purchasing Entain would place MGM as a “pure play omni-channel global leader in gaming and entertainment,” allowing it to accelerate the growth and market penetration of BetMGM.
[image: MGM Resorts]