The news follows the shock departure of Entain’s chief executive last week. Segev was appointed CEO in July 2020 after Kenny Alexander’s 13 years at the helm.
MGM’s CEO has sought to assure investors that BetMGM, the U.S. sports betting and online gaming venture with Entain, remains a key priority for the company.
Bill Hornbuckle said: “We believe that BetMGM has established itself as a top three leader in its markets and we remain committed to working with Entain to ensure its strong momentum continues as it expects to be operational in 20 states by the end of 2021.”
J.P. Morgan gaming analyst Joe Greff has said in a research note that MGM ending its pursuit of Entain doesn’t change the company’s ability to “secure equity value” from the growing U.S. sports betting and igaming market.
“We interpret today’s news as Entain’s shareholders wanting much more than what MGM was willing to offer,” Greff said.
The news coincides with Alta Fox Capital Management, one of the largest shareholders in Enlabs, labelling Entain’s £250m offer for the company as ‘inadequate’.
Source: GMB
