Entain Share Discussion Threads

[italianofacile] 13/4/2024 11:42

What is not clear to me, is can Entain the Group be bought without MGM say so, I would have thought MGM could not reasonably and legally object to sale of Entain.. Unless the US license is threatened..

[loganair] 13/4/2024 11:29

Any sale of Entain, the buyer most probably will have already agreed to sell Entain's 50% in BetMGM to MGM therefore MGM will be the 100% owners of BetMGM.

[italianofacile] 13/4/2024 10:22

PlayUSA
To date, there have never been public reports of a lack of alignment between Entain and MGM regarding the direction or operation of BetMGM. As Klein further points out, Entain may have already fulfilled its purpose for MGM regarding BetMGM, too.

Thus, the potential unknowns for MGM in having a new partner, and potentially one that lacks experience in the gaming industry while simply viewing Entain as another addition to the investment portfolio, could be very unattractive.

That could be equally unattractive for BetMGM Casino players, as a hedge fund only interested in profit might stand in the way of further investment into BetMGM. Because of MGM’s experience in the gaming industry and commitment to making BetMGM a market leader, full ownership by MGM could be a superior situation for players.

Decisions about any takeover bids will ultimately be up to Entain shareholders. Some offers might be forthcoming soon.

[bargainsniper] 12/4/2024 14:12

Q1 trading update this coming wednesday

[mylands] 12/4/2024 12:53

Looks like we have broken through the £8 level, next stop £8.50 or maybe even £9, if a good announcement is made regarding the appointment of a new CEO. Here's hoping.

[gambler911] 11/4/2024 07:36

The departure of the Entain CEO, plus uncertainties about the damage from regulatory miscues and slowing growth in its global business, have once again raised the interest among hedges about a takeover. This has raised speculation by my industry colleagues that could be revving up to MGM taking another pass at the company with a revised offer.

Analysts' forward view puts an MGM price target, or PT, at $53 by early 2025. Our PT still sits at $55, and we think it's reachable by 3Q24. Our faster ramp is built off our estimate that a Macau recovery will be much faster, reaching a pre-covid 2019 pace by late Q324. It also reflects our strong conviction that the BetMGM unit will outperform and sustain its market share at #3 in the U.S.

At writing, Entain's U.S. unit is trading at $10.44 a share. Its market cap is estimated at $6.68b. This valuation plus a reasonable premium could put the company's partial value back into the MGM crosshairs. Under most circumstances, it would appear that another MGM bid has lots of run room to satisfy holders. We would assume a deal could be made in cash plus MGM shares, currently trading at $46.

[loganair] 10/4/2024 20:27

In recent weeks, Gambling Insider understands Wall Street boutique advisory Moelis was appointed to advise the entire Entain board alongside BoA and Morgan Stanley, as well as the CAC committee, in relation to the possible sale of several of Entain’s overseas brands.

Given these latest developments and the fact the operator is likely to soon hire a new permanent CEO, there may be a possibility that a buyout could happen.

[macarona] 10/4/2024 20:10

Richard Flint has been ruled out of the CEO position

[advjoe] 10/4/2024 16:22

Entain's review, which was being undertaken by investment bank Moelis, was still in the early stages, with findings to be fed into a newly formed "capital allocation committee" run by Gibson, before any final decision could be reached. However, the review could result in no brands being put up for sale

Times sources also noted that Entain may reveal the name of its next chief executive "in the coming days and weeks", likely putting attempts to pick apart the business by prospective bidders at risk.

[macarona] 09/4/2024 09:05

Personally, I would accept £13-£14, after the recent scandals, it seems employee morale is at an all time low, and that does not bode well for the future of any company.

Having said that, mr market thinks a bid is highly unlikely..

[italianofacile] 08/4/2024 19:54

Wad.. Exactly my thoughts..

[wad collector] 08/4/2024 19:47

Really ?
You have forgotten that you have previously made several claims to have sold here to buy your ramped stocks. And given that it is only just off a 3 yr low , a profit is unlikely and you have never mentioned buying any in the first place!

Blackhorse23 - 25 Nov 2023 - 16:18:26 - 9978 of 10926 ENTAIN - ENT
Massive 585 million fine has to pay now !! Money moving to PFC
Blackhorse23 - 05 Jun 2023 - 10:30:04 - 8611 of 10926 ENTAIN - ENT
Added 888 holdings , excellent opportunity
Blackhorse23 - 31 May 2023 - 23:37:35 - 8604 of 10926 ENTAIN - ENT
I think best value gambling company in LSE is 888 , better value mcap than here & more revenue generating company (888 holdings)
Blackhorse23 - 27 Apr 2023 - 09:23:29 - 8476 of 10926 ENTAIN - ENT
Added 888 because it’s very cheap atm
Blackhorse23 - 27 Apr 2023 - 09:23:08 - 8475 of 10926 ENTAIN - ENT
Agree lol
Blackhorse23 - 19 Oct 2022 - 10:44:55 - 7025 of 10926 ENTAIN - ENT
High market cap , I am out from here & moved to CURY (LSE)

[blackhorse23] 08/4/2024 15:02

Out with profit , & bought GNC

[italianofacile] 08/4/2024 12:22

Betmgm deal has 19 years to run.. Underlying Ebitda at 30 percent margins right now is 600m..likely to rise to +1bn annual over the lifetime of the deal.. Not a stretch to see Entain making 2bn per annum Ebitda in 5 years.. 12quid a share is a stitch up..

[loganair] 08/4/2024 11:33

If Private Equity make a go for Entain, it seems reasonable to say they would already have a deal done with MGM, to sell then the 50% in BetMGM.

[base7] 08/4/2024 11:29

MGM would not be happy if our 50% of Betmgm was sold to private equity or a potential rival, thereby compelling them to join the fray & hopefully resulting in a better outcome for long term holders.

[suetballs] 08/4/2024 10:30

Option 2 would appear best imo but are we up to it?
And what about the new ceo - perhaps that's why it's a struggle to get a high calibre one if he/she is ultimately going to be out of a job.
Suet

[macarona] 08/4/2024 10:25

Market not overly excited thought!

[loganair] 08/4/2024 09:28

I see one of two things happening:

1. Private equity takes over Entain, splits the company into two. Sells Entain's 50% BETMGM to MGM then either sells the rest as a whole or in bits and pieces or relists the rest says as GVC.

or

2. Entain themselves splits the company into two. Sells their 50% of BETMGM to MGM, either keeping the rest and most probably remaining the company or selling out the rest so the company is no longer.

[loganair] 08/4/2024 09:21

The assets of Entain Plc are being closely circled by private equity giants, with a view to plunder the FTSE100 gambling group under its strategic review.

Riding high on a peak share price of £22 and empowered by 20 quarters of double-digit growth, in 2020 and 2021, Gibson rejected two consecutive approaches made by MGM, each above £7bn, to acquire Entain.

At the time, Gibson’s spurning of MGM’s overtures seemed inspired; however, fast-forward to today and “Entain is a shadow of its former self. A rout of the company’s shares has left them worth less than £8.”

Gibson departs Entain having settled a £600m fine with HMRC and the Crown Prosecution Service (CPS) to conclude the investigation into its former Turkish subsidiary operated by GVC Holdings.

Gibson’s tenure as chairman saw the company’s leadership team, led by former CEO Jette Nygaard-Andersen, prioritise growth within regulated markets, moving away from the high-risk ‘grey market’ strategy pursued by GVC Holdings.

As noted, “the duo spent more than £2bn on 11 acquisitions, from Eastern Europe to Canada, in the years that followed” – an M&A strategy that expanded Entain’s gambling portfolio to 35 brands.

Booking corporate losses of £900M, the board of Entain has established a Capital Allocation Committee (CAC) to evaluate the FTSE100 firm’s brand portfolio, corporate funding, and operating structures.

Pressure mounts on the CAC team to price up assets, as PE vultures circle a bruised and bloodied FTSE firm which could trigger a fire sale of brands such as Coral, Sportingbet, Bwin, and Party Gaming.

Apollo and CVC Capital, the private equity firms in question, boast a distinguished history of fruitful investments in the gambling sector, having successfully restructured and then divested companies including Lottomatica, GameNet, Sky Bet, Sisal, and OddsChecker.

[tyroneshares] 08/4/2024 09:18

I do hope there's a bid which develops into a war, otherwise we'll have years before any recovery. Starting point £12.30? "STS" Placement price?Many employees were well behind all of the previous bid offers and probably drove a lot of the internal hatred for puppet blonde when rejected.

[deanowls] 08/4/2024 09:05

Tbf most on here we’re saying to reject it.

[loganair] 07/4/2024 13:12

So often CEO's reject bids saying the company is worth far more then only to see the share price fall dramatically. Meanwhile a few years later to either go bust or accept a bid at a far, far lower price.

[italianofacile] 07/4/2024 13:10

Turned down actually 0.6 of am mgm share which will soon be 50 dollars a share.. And if MGM had owned all of Betmgm and looked after the Entain acquisition they'd be nearer 55 /60 dollars.. Clearly MGM are still very much in the picture it's going to be akin to William Hill, Ceasers pincer