Entain (LSE:ENT, Financial) : MGM’s failed approach to acquire Entain in January gave us the opportunity to study this iGaming leader ahead of the July expiry of the U.K.’s six month “cooling off” window. We gained an appreciation for the valuable BetMGM JV stake as well as Entain’s vertically integrated tech stack. The shares appeared to offer attractive value without pricing in the prospect for a bid; in short, we thought there was cheap optionality. Entain’s shares rose after DraftKings approached the company in September and remain above pre-offer levels, despite the recent withdrawal of interest, validating the company’s standalone value. It is uncommon to see one company receive two unique bids in the same calendar year, and we think this bodes favorably for Entain’s business and strategic value.
From Daniel Loeb (Trades, Portfolio)'s Third Point third-quarter 2021 letter.
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