MGM is going to face harsher purchasing conditions as Entain continues to expand.
The international gambling operator Entain has recently been on an acquisition spree, having taken control of over five companies this year, with the total sum exceeding a billion dollars. This of course is great for the business, as its shares have been steadily growing and investors are happy, however, purchasing it is going to be challenging for potential suitors.
One of the prominent prospective owners of the company is the hospitality and entertainment corporation MGM Resorts. It already has a contract with the operator, as both firms own a 50% stake in BetMGM, however it has clear intentions of bringing its iGaming operations in-house, where the joint venture takes a chief role.
About one and a half years ago, in January of 2021, the entertainment conglomerate offered over 11 billion dollars for the operator, however the latter rejected, naming the offer insufficient. Furthermore, there was no evidence of a counter-offer by MGM and as a result the negotiations fell through.
At present, with Entain’s acquisitions amounting to over a billion dollars in just the past eight months alone, the organization has grown exponentially. Seeing that the hotel company struggled to buy them before, it will face ever-challenging terms in the future.