Entain may sell BetMGM stake or consider MGM merger, analyst says
Earlier this month, the global gaming giant, Containsannounced the departure of its CEO, Getty Nygaard Andersen. The unexpected step resulted in the appointment of a non-executive director of the company. Stella Davidas interim CEO, until a permanent replacement is appointed to this high-level role.
Now, a new report has been released by… Seeking alphaciting an expert analyst, indicates that there are different options for Entain, including a complete or partial sale or sale of assets. James WhitcroftA Jefferies analyst explained that the ongoing management changes could positively impact the gaming and entertainment giant’s shares. Before the beginning of 2024.. Jefferies has changed its rating on Entain from ‘hold’ to ‘buy’. As of Monday of this week, the company’s shares were up 5.0%, reaffirming Continuous positive change over the past two weeks.
With that in mind, Wheatcroft predicted several different scenarios for Entain’s future. he He did not rule out a possible sale of Entain to MGM Resorts International. Furthermore, Wheatcroft said that Entain It may consider selling its 50% stake in BetMGM. The expert analyst confirmed that Entain may also explore divesting the company’s other assets. According to Wheatcroft, changes are likely It may come in addition to the company’s search for a new CEO. “Several factors now suggest there is an opportune moment for MGM to reevaluate its approach to Entain,” the analyst wrote.
“We expect other options to include selling Entain to MGM, selling BetMGM’s stake, selling other assets, as well as finding a suitable CEO.“
James Wheatcroft, analyst at Jefferies
Top-level changes follow the CPS convention
The latest announcement comes after the last The Sunday Times The report suggested that Entain may hire the founder of Eminence Capital, Ricky SandlerTo its Board of Directors. Sandler previously criticized Entain’s CEO resignation. Moreover, it is Outspoken critic For some company decisions such as purchasing STS Holdingsthe leading sports betting operator in Poland.
The latest change in Entain’s senior leadership came after late last month, the company confirmed it had reached an agreement with Public Prosecution Service (CPS). The aforementioned settlement was related to HMRC investigation The company’s activities in Türkiye date back several years. at recent days 585 million pounds sterling The settlement agreement ($737.5 million) comes despite Entine selling its Turkish assets after a deal from 2017.
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