{"id":296864,"date":"2023-11-01T18:10:14","date_gmt":"2023-11-01T23:10:14","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=296864"},"modified":"2023-11-02T11:16:15","modified_gmt":"2023-11-02T16:16:15","slug":"analyst-suggests-entain-find-compromise-with-betmgm","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/analyst-suggests-entain-find-compromise-with-betmgm\/","title":{"rendered":"Entain Should Consider BetMGM Compromise, Says Analyst"},"content":{"rendered":"

Entain Plc (OTC: GMVHY), which has seen its market value slump considerably this year, has at least two paths to consider to reverse course.<\/p>\n

\"BetMGM\"
The BetMGM logo. An analyst suggests that owner Entain find some form of compromise with the online sportsbook operator. (Image: NY Sports Day<\/em>)<\/figcaption><\/figure>\n

That\u2019s the take of Susquehanna analyst Joseph Stauff, who initiated coverage of the Ladbrokes owner Wednesday with a \u201cpositive\u201d rating and a price target that implies upside of 17% from current levels. Among the \u201ctwo independent and attractive paths for the stock,\u201d Stauff noted a renewed emphasis on organic growth outside the U.S., which could be one avenue to consider.<\/p>\n

Entain\u2019s U.S. exposure comes from its 50% stake in BetMGM. Outside the U.S., the operator has used acquisitions<\/a>, including some criticized by investors, to bolster topline growth.<\/strong><\/p>\n

While the Coral operator has signaled it plans to remain acquisitive, a renewed emphasis on organic growth and gaining market share outside the U.S. without dealmaking could be to the delight of investors.<\/p>\n

In late September, Entain shares tumbled after the company issued a disappointing 2023 net gaming revenue (NGR) forecast, citing softness in online gaming. It also mentioned slack growth in Australia<\/a> and Italy.<\/p>\n

BetMGM Deal Could Help Entain, Too<\/h2>\n

The other avenue through which Entain could potentially restore investor confidence and boost growth is some form of compromise with BetMGM.<\/p>\n

(That would) release its inflexible operating structure that we think needs to occur in the near-term before risking a more permanent step-function decrease in market share,\u201d<\/strong>\u00a0Stauff noted.<\/p><\/blockquote>\n

The Susquehanna analyst didn\u2019t detail what form such a compromise would take. One idea would be for Entain to simply sell its half ownership in BetMGM to partner with MGM Resorts International (NYSE: MGM). Such a transaction would likely generate a hefty payday for the seller, and MGM has made clear it would like to control all of the iGaming and online sportsbook operators.<\/p>\n

At the Global Gaming Expo (G2E) in Las Vegas last month, Entain CEO Jette Nygaard-Andersen told attendees that joint ventures don\u2019t last forever<\/a>, implying a time will come when BetMGM\u2019s ownership looks materially different than it does today.<\/p>\n

Entain Sale a Stretch, But \u2026<\/h2>\n

With its shares down 31.20% year to date, Entain\u2019s market capitalization has slumped to $7.22 billion. That\u2019s well below the $11.06 billion MGM offered in January 2021 to acquire the company, and a fraction of the more than $20 billion DraftKings (NASDAQ: DKNG) offered later that year.<\/p>\n

\n

Over the nearly three subsequent years, Entain has frequently been mentioned<\/a> as a potential takeover target, and analysts haven\u2019t shied away from such speculation. Those rumors could intensify because, with the aforementioned market cap of $7.22 billion, Entain is approachable to any number of prospective suitors.<\/p>\n<\/div>\n

However, Nygaard-Andersen hasn\u2019t signaled that she\u2019s interested in selling the company, and the recent acquisition binge frames Entain as more buyer than seller.<\/p>\n","protected":false},"excerpt":{"rendered":"

Entain Plc (OTC: GMVHY), which has seen its market value slump considerably this year, has at least two paths to consider to reverse course. That\u2019s the take of Susquehanna analyst Joseph Stauff, who initiated coverage of the Ladbrokes owner Wednesday with a \u201cpositive\u201d rating and a price target that implies upside of 17% from current […]<\/p>\n","protected":false},"author":46,"featured_media":262076,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1,1074],"tags":[81903,81967,80968],"acf":[],"yoast_head":"\nAnalyst Suggests Entain Find Compromise With BetMGM<\/title>\n<meta name=\"description\" content=\"Analyst says Entain compromise with BetMGM could drive growth.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/analyst-suggests-entain-find-compromise-with-betmgm\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Analyst Suggests Entain Find Compromise With BetMGM\" \/>\n<meta property=\"og:description\" content=\"Analyst says Entain compromise with BetMGM could drive growth.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/analyst-suggests-entain-find-compromise-with-betmgm\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-01T23:10:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-02T16:16:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/mgm2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"816\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/analyst-suggests-entain-find-compromise-with-betmgm\/\",\"url\":\"https:\/\/www.casino.org\/news\/analyst-suggests-entain-find-compromise-with-betmgm\/\",\"name\":\"Analyst Suggests Entain Find Compromise With BetMGM\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/analyst-suggests-entain-find-compromise-with-betmgm\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/analyst-suggests-entain-find-compromise-with-betmgm\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/mgm2.jpg\",\"datePublished\":\"2023-11-01T23:10:14+00:00\",\"dateModified\":\"2023-11-02T16:16:15+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Analyst says Entain compromise with BetMGM could drive growth.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/analyst-suggests-entain-find-compromise-with-betmgm\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/analyst-suggests-entain-find-compromise-with-betmgm\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/analyst-suggests-entain-find-compromise-with-betmgm\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/mgm2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/mgm2.jpg\",\"width\":1024,\"height\":816,\"caption\":\"The BetMGM logo. 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