Las Vegas based casino operator MGM Resorts announced on Tuesday that it was pulling out of a deal to acquire UK’s sports betting company Entain. Entain is the owner of Ladbrokes. MGM said that after careful consideration, it decided not to submit a revised proposal after its second offer of $11bn via an all stock deal at an exchange ratio of 0.6x was rejected. This was MGM’s second bid after its earlier all-cash bid of ~$10bn was rejected by the British gaming company. If the deal had gone through, it would have helped the US casino major to enhance its online presence by creating one of the world’s largest gaming companies. Bill Hornbuckle, CEO of MGM Resorts International said, “BetMGM, our U.S. sports betting and online gaming venture with Entain, remains a key priority for the Company as we continue to leverage our preeminent physical gaming, entertainment, and hospitality platform to expand digitally” even as the deal to acquire Entain fell out. MGMs 7.75% 2022s and 6% 2023s were up 0.38 and 0.13 to trade at 107 and 107.37 respectively.
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