MGM to Get $1 Billion in Support From IAC for Entain Bid Attempt
(Bloomberg) -- MGM Resorts International’s biggest shareholder, Barry Diller’s IAC/InterActiveCorp, vowed to help the company in its takeover attempt of betting-house operator Entain Plc, pledging as much as $1 billion toward the effort.
The casino giant received a nonbinding letter of intent from IAC saying it could help fund a cash portion of a bid for Entain through an investment in MGM. The suitor has made an $11 billion, all-stock offer for Entain, but has been considering changing the proposal to include some cash.
Entain, which owns the bookmaker Ladbrokes and betting site Bwin, said this week that the current bid “significantly undervalues” its business, but left the door open to further discussions. Entain’s board asked MGM to provide additional strategic rationale for the merger.
A deal would combine Entain’s more online-focused business with the gambling empire of MGM, the largest operator of casinos on the Las Vegas Strip. IAC owns about 12% of MGM, according to data compiled by Bloomberg.
Tying together digital and physical operations is a key benefit of the deal, IAC said in its letter.
“The future of gaming will be omnichannel,” according to a statement. “The long-term winners in global gaming will deliver customers compelling digital and physical experiences under one brand and loyalty program.”
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