DraftKings (NASDAQ:DKNG) is making headlines with some major sports betting news on Tuesday.
The firm has made plenty of moves since the beginning of 2020 to boost the price of DKNG stock from around $10 per share to now more then $53. Overall, DKNG stock is up 400% over that time. And year-to-date, shares are up nearly 15%.
That being said, the latest announcement from DraftKings has the stock lower on Tuesday. So, what is the sports betting news driving DKNG stock lower? Let’s find out.
- The firm said it is making an offer valued at $20 billion to acquire U.K. online sports betting company Entain (OTCMKTS:GMVHF).
- According to CNBC, the offer is “largely in DraftKings stock, along with cash.”
- Additionally, “before news of the deal, the enterprise value of Entain was about 13.2 billion pounds, or $18 billion.”
- Entain owns two major gambling companies — Ladbrooks and Coral.
- Moreover, rumors of the deal were partially confirmed by Entain on Tuesday.
- The firm said it received a proposal from DraftKings to acquire Entain for cash and stock.
- However, they also issued a statement of assurance to its shareholders.
- “There can be no certainty that any offer will be made for the Company, nor as to the terms on which any such offer may be made,” Entain said.
- “Shareholders are urged to take no action at this time,” the firm added.
- The company also mentioned that a future announcement would be made if needed.
This sports betting news had DKNG stock down almost 6% and GMVHF stock up 18.4% as of Tuesday afternoon.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nick Clarkson is a web editor at InvestorPlace.
