US based MGM Resorts International is looking to buy British gambling group Ladbrokes for the sum of approximately $11 billion, making the casino brand the latest operator to throw its hat into the online gambling industry ring, which has increased significantly amid the coronavirus pandemic.
Entain, owner of Ladbrokes, confirmed on Monday it has received an offer of $11.1 billion (£8.1 billion) which they believe is undervalued although reportedly is 22% above its December 31 closing price.
Entain shares soared by over 26% on Monday, increasing its value considerably above the per share price offered by MGM, signaling that some investors expect either a higher offer from MGM or other buyers to place their wager on the potential acquisition of Ladbrokes.
MGM is a major player in the Las Vegas casino realm and already partners with Ladbrokes in their BetMGM joint ownership of the online sports gambling company that operates in over a dozen US states. Expert analysts believe the cost may be too high for MGM shareholders’ liking. Shares of MGM were down 0.3% in pre-market trading on Monday.
Ann Sullivan is a contributing staff writer covering national and world news topics. She brings dedicated experience having written international and domestic news, blogs, and web content for over 20 years. She’s also a published poet and graphic designer with degrees in Business and Graphic Communications and has been a music distributor, music industry sponsorship sales director and band manager.