The United States casino group said in a statement on Tuesday that it would not make a firm offer to Ladbrokes owner Entain after “careful consideration” and “limited recent involvement”.
Entain’s shares rose 25% after MGM’s offer was announced, indicating that investors believed a bigger offer was coming, whether from MGM or another competitor. Following the announcement on Tuesday, Entain’s shares plunged 15% in London. MGM’s shares rose 2.6%.
MGM, one of Las Vegas’ leading companies, said it remains committed to BetMGM, its existing joint venture with Entain. BetMGM, a sports betting and online gaming company, operates in more than a dozen U.S. states.
“We remain committed to working with Entain to ensure that its strong momentum continues, as it expects to be operational in 20 states by the end of 2021,” said MGM CEO Bill Hornbuckle in a statement.
Entain echoed this sentiment in a regulatory process as it released its credentials.
“Entain has a clear strategy for growth and sustainability, supported by cutting-edge technology, which is confident that it will deliver significant value to stakeholders,” said the company.
The British company’s next steps will involve the search for new leadership, with CEO Shay Segev stepping down at the end of this year. The announcement that he would leave Entain to head a sports streaming platform came just days after MGM’s bid was rejected.