- The stock price of DraftKings Inc (NASDAQ: DKNG) fell by over 5% today. This is why it happened.
The stock price of DraftKings Inc (NASDAQ: DKNG) fell by over 5% today. Investors appear to be responding negatively to DraftKings reportedly making a $20 billion cash and stock offer for buying UK betting company Entain. Entain had confirmed that it did receive a stock and cash proposal from DraftKings, but the terms were undisclosed.
“A further announcement will be made as and when appropriate,” said Entain in a filing. “Shareholders are urged to take no action at this time.”
Entain’s stock price surged over 17% during intraday trading today following the news about the deal. Previously, Entain refused an $11 billion deal from MGM Resorts International back in January. Entain cited the deal as significantly undervaluing the company.
Entain and MGM currently run a 50-50 joint venture called BetMGM, which has been surging in popularity in recent years. And Entain also runs its own gambling brands like Coral, Gala Bingo, and Party Poker.
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