Recently, MGM Resorts’ chief executive officer, Bill Hornbuckle, was asked about any change of heart following the company’s latest public statement on the acquisition bid topic. His answer led to a 4% drop in Entain’s shares.

Last fall, it was speculated that MGM Resorts would possibly make a new acquisition bid for global gaming giant Entain following the decrease in the latter’s share price in 2023 along with the ousting of now former chief executive officer Jette Nygaard-Andersen at the end of the year. 

The S&P 500 global gaming and entertainment company that features national and international locations initially said no to an acquisition bid in 2021 that gave the business an enterprise value of £8.1 billion ($10.17 billion).

That amount currently stands for an important premium on the company’s market cap of £6 billion ($7.53 billion).

“It’s About Product, Product, Product, and Focus”

The CEO replied that their main focus would be on product in the upcoming months, leaving large-scale mergers and acquisitions to the side.

Hornbuckle explained that, while attending the ICE event in London last week, he met with Stella, their partner, and talked over the importance of making sure “everyone’s focus is on BetMGM.”

He emphasized that 2024 will be a critical year for everyone, ”So, it’s about product, product, product, and focus.” His comments immediately caused Entain’s share price to fall close to 4% down to £9.22 ($11.58) prior to slightly recovering to £9.84 ($12.53).

2024, an “Investment Year” for BetMGM

In December 2023, BetMGM’s chief executive officer, Adam Greenblatt, spoke during an investor presentation, calling 2024 an “investment year” as the joint venture was trying to regain the market share that it had lost while improving its product.

Hornbuckle agreed that 2024 would be “a reinvestment year,” emphasizing the need and desire to get their product “in a better and different shape” and adding they would like additional parlays. 

“Obviously,” he continued, “the acquisition of Angstrom by our partner will be a big add to that. We’ll be able to stick out more product. We’ll have more confidence in it.”

The CEO explained that their focus will fall on baseball in the next months, with expectations to hit soccer in 2025 while putting many of their product differentiators to use in the meantime.

For the spring, Hornbuckle also discussed their plan to have a single wallet in play. As for when they will begin to make some cash, 2025 seems to be on the horizon. 

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Capital Research and Management Company, a subsidiary of The Capital Group Companies, Inc., reduced its shares in Kindred Group. On Wednesday, Kindred confirmed that it received notification about the reduced number of shares and voting rights by Capital Research and Management Company.

Per the notification, as of January 22, 2024, Capital Research and Management Company now holds 8.63% of shares and voting rights in Kindred. This strategic move comes at a time when La Française des Jeux (FDJ) announced a $2.5 billion bid to acquire Kindred recently. With the proposed strategic bid, FDJ seeks to propel its global presence, after it already has established strong footprint across Europe.

Considering FDJ’s announcement, Kindred’s shares skyrocketed recently. As of January 22, 2024, the company’s shares were up 17% on the Stockholm Nasdaq.

Throughout the years, Capital Research and Management Company’s stake in Kindred varied. An all-time high share and voting rights in Kindred, some 15.33%, were held by the company back in October 2021. More recently, Capital Research and Management Company reduced its stake in July 2022 to 10.86%.

“Kindred Group plc hereby announces that it, on 23 January 2024, has received a notification of major holdings from The Capital Group Companies, Inc., a company with its registered office in Los Angeles, USA. The notification relates to a reduced number of shares and voting rights in Kindred by Capital Research and Management Company, a subsidiary within The Capital Group Companies, Inc. which holds the relevant position in Kindred Group,“

reads a statement released by Kindred Group

Preliminary Q4 Results Point To Growth in EBITDA and Revenue

Amid the announced takeover bid from FDJ, Kindred released its preliminary Q4 2024 results, pointing to an increase in revenue and uptick in EBITDA. In total, Kindred’s revenue for the fourth quarter hit £312.9 million ($398 million), a result that marked an increase of 2% year-over-year.

On the other hand, underlying EBITDA for the period grew as well, hitting £56.8 million ($72.2 million). In contrast, for the fourth quarter in 2022, underlying EBITDA halted at £39.1 million ($49.7 million).

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American sports betting giant DraftKings had considered a takeover of 888 Holdings amid the struggles experienced by the latter company. While the former company has not yet approached 888 with a takeover proposal, it mulled over the possibility and discussed the matter with 888 shareholders.

According to a report by the Financial Times, DraftKings considered the takeover attempt during this summer. The financial news outlet also pointed out that the gambling company had engaged in preliminary discussions about the acquisition.

In June and July, Jason Robins, DraftKings’ chief executive officer, met with representatives of FS Gaming, a major 888 shareholder. Robins reportedly discussed the takeover with FS Gaming, inquiring about the possibility of an all-stock takeover of 888 Holdings.

The talks happened around the same time 888 Holdings was on the lookout for a new chief executive officer. For reference, that position was recently taken by Per Widerström who departed from a number of NED positions to dedicate all of his time to 888.

888’s Hurdles Make It a Tempting Takeover Target

Financial analysts believe that 888 Holdings’ precarious position makes it an ideal target for takeover attempts. In addition to its slumping share price and management and business challenges, the company had to deal with regulatory complications and a review of its license.

As a result, the Financial Times believes that DraftKings could have theoretically acquired 888 Holdings for roughly $676.9 million, based on its market capitalization at the time.

However, 888 Holdings’ massive outstanding net debt could have been a problem, according to analysts. For reference, earlier this year the company acquired the British gambling giant William Hill from Caesars Entertainment.

DraftKings’ consideration of a takeover aligns with the company’s overall expansion strategy.

DraftKings Maintains a Strong Momentum

In the meantime, DraftKings published its financial results for the third quarter of 2023. The company posted revenue of $790 million for the period, which attests to the success of its business strategy.

As a result of its strong Q3 results, DraftKings updated its FY 2023 guidance and is now expecting full-year revenue in the range of $4.5-4.8 billion.

The favorable results were attributed to the company’s launch in a number of new jurisdictions. The new launches are also expected to have a positive effect on the company’s adjusted EBITDA for 2023.

Speaking of launches in new jurisdictions, the company recently went live in Maine, enjoying a stellar launch during the first weekend of regulated sports betting in the state.

The post DraftKings Contemplated 888 Holdings Takeover, Report Says appeared first on Keno Wizard.

Polish-facing sports betting brand STS has secured an advertising rights arrangement with the Union of European Football Associations (UEFA). Now owned by Entain, the operator has secured the right to conduct marketing activities for the UEFA Europa League and the UEFA Europa Conference League in Poland.

This will expand the sports sector presence of Entain, which already partners with the two leagues in question. With Entain having acquired STS, the Polish brand will also be able to conduct UEFA-oriented campaigns.

Now activated by STS in Poland, the rights will allow the Polish operator to appeal to soccer fans across Europe. The operator’s logo will be visible during matches of Polish teams, promoting its wagering products.

At the same time, STS promised to launch a variety of local promotions for sports fans in the country. Lucky fans will even be able to win tickets for some of the hottest European soccer matches.

As the largest private operator in Poland, STS is firmly committed to supporting the sports sector. Already boasting partnerships with many clubs across multiple sports, the operator is also the official sponsor of Poland’s national soccer team.

Entain’s Takeover Continues to Benefit STS

STS’ chief marketing officer, Paweł Rabantek, commented on the activation of the advertising rights. According to him, the recent takeover by Entain brings a “number of benefits” for his team, including the opportunity to expand STS’ marketing activities and reinforce its position in Poland’s gambling market.

Rabantek also expressed his happiness about the implementation of all possible advertising services both within the UEFA Europa League and UEFA Europa Conference League competitions from the first match day.

Rabantek teased that fans can expect many exciting promotions.

STS Dominates the Polish Market

STS was acquired by Entain in June for approximately $945 million. Approved by STS’ two major shareholders, Mateusz Juroszek and Zbigniew Juroszek, the deal saw STS join the global Entain family.

Currently boasting around 800,000 active users and a network of 400+ physical betting shops, STS is an undisputed leader in the Polish gaming industry.

Two weeks ago, the gambling and betting company published its results for the first half of the year, strengthening its leadership position and maintaining its momentum. The company’s metrics increased across the board, attesting to the effectiveness of STS’ strategy.

In other news, PandaScore just debuted in Poland thanks to a partnership with the local betting leader. Under the deal, the former company supplied its cutting-edge esports betting products to STS. 

The post STS Secures UEFA Advertising Rights Thanks to Entain Takeover appeared first on Keno Wizard.

2Mee Limited is a company that specializes in the development of next-generation omnichannel communication by delivering messages from influencers on-screen and via applications. Such messages stand out with personalization and customization options, allowing for humanized messaging over the internet and helping brands engage with their audiences via an innovative method.

The company anticipates further growth and expansion, which may be achieved via a reverse takeover. Golden Rock Global (GCG), an acquisition vehicle that explores emerging opportunities within the fin-tech vertical, revealed recently that it has signed a head-of-terms agreement with 2mee shareholders. The proposed acquisition involves the entire share of capital of 2mee.

Despite the head of terms agreement, the acquisition is subject to the relevant financial due diligence and legal approvals. Still, GCG explained that it anticipates the acquisition to be in the region of £6 million ($7.6 million) and £8 million ($10.1 million). Judging by a statement released by the company, if the process gains further traction, the consideration is expected to be satisfied with new GCG shares. Still, the company confirmed that the final price tag of the takeover is yet to be determined and approved.

2mee Anticipates Significant Growth and Expansion

The process, known as a reverse takeover, is expected to propel 2mee’s growth. The company confirmed that it anticipates scaling up its operations and expanding its reach at the same time. 2mee said that this process may involve the hiring of new specialists and retaining talent, along with the development of technology that caters to leading iGaming operators.

Ross Andrews, GCG’s chairman confirmed that the company is thrilled to collaborate with 2mee. He spoke about the growing global market of influencers that continues to expand. Finally, Andrews highlighted 2mee’s innovative technology that helps capitalize on this growing market and continues to grow.

“In Golden Rock Global, we have a group of people that understand the power and capabilities of our technology and how it can change the game for businesses across many sectors when it comes to acquiring and retaining customers.“

James Riley, CEO of 2mee

James Riley, 2mee’s CEO, revealed that online gambling brands can benefit from the company’s technology that delivers options for personalization. According to him, 2mee’s technology can help iGaming companies stand out from the competition and impact “consumer behavior at the crucial moment of decision.”

The CEO of 2mee added that it identified GCG as a company that sees the potential of this new technology and the positive impact it can have on player engagement and retention. Finally, Riley said that 2mee is looking forward to its next level of growth through collaboration with GCG.

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Ahead of the finalization of the acquisition by Entain, STS Group, the leading Polish sportsbook operator, released a new trading update, outlining the strong growth of the company for the second quarter of 2023. For Q2 of this year, the recorded amount of stakes hit PLN 1.103 billion ($278 million). This result, when compared to the PLN 1.066 billion ($268.6 million) result from the second quarter of last year, marked an increase of 3%.

When it comes to net gaming revenue (NGR), STS reported significant growth. For Q2 in 2022, NGR reported by the company was PLN 135 million ($34 million). In contrast, NGR for the second quarter of this year hit PLN 170 million ($42.8 million), a result that marks a solid growth of 26% year-over-year.

GGR for Q2 this year was PLN 298 million ($75.1 million), judging by the latest trading update released by the company. A comparison to the corresponding period shows that GGR in Q2 2023 increased by 14%, considering that the result from the same period in 2022 was PLN 263 million ($66.3 million). It’s important to mention that the latest results exclude the company’s Estonia and UK operations.

Mateusz Juroszek, STS Holding’s CEO, explained that the latest figures are a testament to the company’s strong growth and performance within the market in Poland. He spoke about the potential of the iGaming sector and acknowledged that STS is able to grow within the market in the country. “We hope to record the highest player activity in the last quarter of this year,” explained Juroszek in conclusion.

“The operating results for Q2 2023 confirm that STS is performing well in the Polish market. The potential of the domestic iGaming industry is high and STS is able to effectively exploit its market position.“

Mateusz Juroszek, CEO of STS Holding

Entain Secures Antitrust Approval for the Acquisition of STS

Entain’s takeover of STS was announced last month. At the time, the company confirmed it plans to acquire the leading Polish bookmaker in a deal with a £750 million ($945 million) price tag. The proposal saw the approval of two of the company’s largest shareholders, Mateusz Juroszek and Zbigniew Juroszek, that collectively own some 70% of STS.

Earlier this week, Entain confirmed that Entain Holdings secured antitrust approval for the acquisition of STS from the president of the Office of Competition and Consumer Protection. The aforementioned approval marked an important milestone in Entain’s plan to acquire the leading sports betting operator.

The post STS Posts Strong Q2 Results Ahead of Entain Takeover appeared first on Keno Wizard.

The Swedish provider of technology for the gaming industry might be next in line for a takeover, according to the freshest Eilers & Krejcik Gaming (EKG) research included in their most recent EKG Line report. 

Kambi Group Not Idly Waiting for a Potential Suitor 

According to EKG, Kambi’s repayment of the $8.3 million Kindred Group convertible bond has done an excellent job at successfully removing an overhang to a possible future acquisition. 

At the same time, the same experts noted that the independent sportsbook that has partnered with visionary operators around the globe is not patiently waiting for a potential buyer to come knocking. On the contrary, their share repurchase program might be a clear indicator of the exact opposite. 

In 2022, Kambi removed a poison pill provision that had been fending off all unsolicited offers for acquisition by selling stock to various investors at prices below the market value. 

Now that the respective provision has vanished, the Business-to-Business provider of sports betting services has turned into a much easier target for potential buyers.

Plus, the much-anticipated mergers and acquisitions that are expected to occur in the sports betting industry in 2023 and beyond wagering will be targeting technology providers as sellers, thus building the case for Kambi to be next in line for an important takeover.

Potential Buyers for the Group: Apollo Global Partners, Bally’s & MGM

Among the main interested parties with the potential to make a run at the Group, we can mention a number of reputable operators in the gaming industry, along with private equity firms. Names like Apollo Global Partners and Bally’s are on top of the list. 

The latter has already inked a fresh technology partnership with the Swedish group earlier in the week. The agreement features a series of provisions that would enable Bally’s to acquire Kambi’s source code in the foreseeable future.

Apollo Global Partners is searching for means to monetize the Yahoo Sports asset using sports wagering. Kambi might be just what they are looking for, especially thanks to their already existing connections via Apollo-owned Great Canadian and Wagr. Apollo also features a front-end technology partnership with Shape Games which is also under Kambi’s ownership. 

According to the same EKG report, MGM Resorts International is another big name that might consider taking over Kambi. Even though the chances that the NYSE-listed casino company to purchase the Sweden-based group are slim, MGM has expressed its desire to obtain ownership over Kambi’s iGaming and sports betting technology. 

The fact that Kambi is already part of MGM’s LeoVegas platform could increase the chances of turning into a potential target for MGM. However, the fact that the decision might also lead to the loss of business-to-business clients, believes EKG, might be a deal breaker. 

At the start of May, MGM Resorts’ LeoVegas announced it acquired Push Gaming as a means of speeding up its global growth. 

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